Johnson Service boosts full-year guidance

Johnson Service Group said on Friday it was on track to deliver full-year profits ahead of expectations, boosted by high volumes and more stable costs.

Updating on interim trading, the textiles firm - which rents out and launders workwear and linen - said group revenues in the six months to 30 June were set to come in at £215m, up from £176.2m a year previously.

Within that, the workwear unit reported revenues of £71m, up from £66m, while the hotels, restaurant and catering division saw sales rise to £144m from £110.2m.

In addition, the AIM-listed firm said that while inflationary pressures continued amid volatile energy markets, it now had more certainty on short-term costs, having secured fixed prices for 84% of its anticipated gas requirements and 87% of its electricity needs.

It continued: "This more predicable cost base, together with current anticipated volume over the busy summer months, gives us confidence that, assuming the trading environment remains unchanged, we will report full-year adjusted operating profit slightly ahead of current market expectations."

Johnson Service is due to publish interim results on 5 September.