19th Mar 2021 13:09
(Alliance News) - Textile rental firm Johnson Service Group PLC on Friday posted a pandemic-induced swing to loss for 2020.
Revenue for 2020 fell 34% to GBP229.8 million from GBP350.6 million, with the company swinging to a pretax loss of GBP32.3 million from 2019's profit of GBP38.1 million.
The company said it started the year strongly, with organic revenue in the first two months pre-pandemic up 5.6%.
However, Johnson Service said the results for the full-year reflect the "dramatic impact" of Covid-19, particularly within its HORECA - hotel, restaurant and catering - division.
"During the first two months of 2021 we have continued to see the impact of the various lockdowns and restrictions on our business, particularly in HORECA. Volumes during January and February in HORECA were some 9% of normal and many of our employees continue to be furloughed," the company added.
As previously indicated, Johnson Service does not plan to propose a dividend for 2020 and will look to reinstate its payout policy as trading returns to "more normalised" levels.
The firm said it remains confident in its medium and long-term growth prospects.
Shares in Johnson Service were down 3.1% at 151.80 pence in London on Friday.
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Johnson Service