4th Mar 2025 12:24
(Alliance News) - Johnson Service Group PLC on Tuesday said it is considering a move to the London Main Market from AIM, as it hiked its dividend and reported increased profit boosted by its Hotel, Restaurant & Catering division.
Johnson Service is a Cheshire, England-based textile rental and services provider, operating across the UK and Ireland.
Pretax profit climbed 26% in 2024 to GBP47.2 million from GBP37.6 million in 2023, as revenue increased 10% to GBP513.4 million from GBP465.3 million.
Diluted earnings per share rose 31% to 8.40 pence from 6.40 pence.
Shares in Johnson Service jumped 10% to 145.00 pence on AIM in London on Tuesday afternoon. The company said it is considering a move to the Main Market of the London Stock Exchange and will issue a further update after speaking with its largest shareholders.
The company declared a final dividend of 2.70 pence per share, giving a full-year dividend of 4.00 pence per share, up 43% from 2.80 pence in 2023.
Johnson Service said it is planning to return an additional GBP30.0 million to shareholders in a share buyback scheme over the next 12 months. An initial GBP15.0 million tranche will be launched shortly.
Revenue for the Hotel, Restaurant & Catering division increased by 15% to GBP371.2 million from GBP322.7 million, with an increased earnings before interest, tax, depreciation and amortisation margin for the division of 29.8%, up from 27.8%
Looking ahead, Johnson Service said it is on track to improve its adjusted operating profit margin to at least 14.0% in 2026. The adjusted operating profit margin was 12.1% in 2024, up from 10.9% in 2023.
It said it is confident of "delivering another year of progress" in 2025.
Chief Executive Officer Peter Egan said: "We are delighted to report that our HORECA business delivered increased volumes during the year, whilst Workwear customer retention rates continued to increase.
"In line with our inorganic growth strategy, we continue to seek out and acquire earnings enhancing businesses which complement our existing geographic coverage. We also continue to invest in our estate to drive production efficiencies, organic growth and support our high levels of customer service."
By Michael Hennessey, Alliance News reporter
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