JSG Johnson Service Group Plc

TIDMJSG

RNS Number : 3376F

Johnson Service Group PLC

15 July 2021

15 July 2021

AIM: JSG

Johnson Service Group PLC

("JSG" or "the Group")

Pre-close Trading Update

JSG, a leading UK textile services provider, is pleased to provide a trading update for the six months to 30 June 2021.

As anticipated, trading has continued to improve since our last statement issued in May.

Workwear volumes in June were some 98% of normal levels, up from 96% in March. We have seen some uptick in sales opportunities as businesses return to more normal trading patterns.

In HORECA, volumes in June were over 70% of normal compared to 30% for the last two weeks of April. We had been proactively planning for the anticipated increase with our customers but the trajectory of the increase in demand was steeper than expected across the industry. Whilst volumes remain difficult to predict from week to week, we anticipate that volumes will see further increases as we enter the peak summer months.

The rapid increase in volumes has resulted in all staff being brought back from furlough, such that no further furlough claims will be made from the end of June 2021. In addition, we have recruited a significant number of employees across HORECA and this is ongoing. In common with many other businesses, the competition for labour has meant that costs of production have seen an increase. This, along with less than optimal productivity in the short term as volume levels build, will have a small impact on margin in the coming months.

Maintaining our normal high service levels has been a challenge as volumes are scaling up rapidly. We have been actively working with our customers to resolve the challenges of shifting demand and service delivery has improved significantly in recent weeks.

Net debt, excluding IFRS 16 liabilities, at the end of June 2021 was GBP8.8 million.

Results for the half year are expected to be published in early September.

ENQUIRIES

 
 Johnson Service Group PLC 
 Peter Egan, CEO / Yvonne Monaghan, CFO 
 Tel: 01928 704 600 
 
 Investec Investment Banking (NOMAD)      Camarco (Financial PR) 
 David Flin                               Ginny Pulbrook 
 Carlton Nelson                           Toby Strong 
  Virginia Bull 
 Tel: 020 7597 5970                       Tel: 020 3757 4992 
 

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July 15, 2021 02:00 ET (06:00 GMT)

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