Johnson Service swings to H1 profit, announces share buyback

1st Sep 2022 08:42

(Sharecast News) - Johnson Service Group announced a share buyback programme on Thursday as it said it swung to a profit in the first half amid a recovery in the hotels, restaurant and café sectors.

In the six months to 30 June, the company swung to a pre-tax profit of £5.1m from a loss of £13.9m in the same period a year earlier, on revenues of £176.2m, up from £99.6m.

Adjusted earnings before interest, tax, depreciation and amortisation rose to £42.8m from £16.9m and the group reinstated its progressive dividend policy, with an interim dividend of 0.8p per share.

Johnson Service also said it plans to launch a share buyback programme of up to £27.5m.

The group said it is continuing to see a recovery in HORECA (hotels, restaurants and cafes) as hospitality returns to more normal and predictable levels. Although inflationary pressures have had an impact in the first half, Johnson said it has continued to secure and implement price increases across its customer base to mitigate the impact.

Chief executive Peter Egan said: "During the six-month period we have achieved a significant improvement in the group's financial performance and are focusing on capital investment across the estate to improve energy and production efficiencies and underpin capacity, alongside implementing mitigating actions to seek to address current and future inflationary pressures.

"Our organic growth is underpinned by increased sales activity and a strengthening pipeline of new business enquiries, whilst our strong balance sheet and cash generation means that we remain well placed to pursue earnings accretive acquisitions."