17th Nov 2020 17:23
(Alliance News) - Textile rental firm Johnson Service Group PLC on Tuesday posted a trading update for the last three months where it has seen a mixed performance across the group.
The Cheshire, England-based firm's workwear division, which serves both industrial and food processing customers, has seen increased volume improving to a 2% reduction at the end of September following a 6% year on year reduction reported in August and is slightly ahead of pre-Covid levels at the end of October.
The hotel, restaurant and catering business had volumes of 55% in September, which was up from 45% in August. However, in October volumes went back to 45% due to various local lockdown restrictions.
Looking ahead, the company remains confident that adjusted earnings before interest tax depreciation and amortisation margin for the full year will be similar to that achieved in the first half.
Further, the cost of the restructuring, including the closure of Newmarket, will amount to around GBP6.0 million and will be charged as an exceptional item, offset by the net impact of the Exeter fire and Treforest flood, it added.
JSG Chief Executive Peter Egan said: "The past three months' performance has been a mixed picture across the Group reflecting current market conditions, with the Workwear business currently seeing volumes having returned to pre-Covid levels, whilst the focus within the HORECA business has been to manage the cost base and ensure we are ready once volumes in the UK's hotel, restaurant and catering markets resume in the coming months.
"We have taken the right steps to manage our cost base and maintain a firm foundation for JSG, with the strength of balance sheet and flexibility of resources and operations to provide for future strong returns when the recovery emerges."
Shares in Johnson Service Group ended up 1.0% at 121.20 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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