Johnson Service's H1 profit up 46% after textile rental expansion

2nd Sep 2014 11:31

Johnson Service Group has delivered positive first-half results after the acquisition of textile rental business Bourne Services Group.The company acquired Bourne in March for £22.3m, expanding its range of services within the textile rental market. Bourne provides linen to over 350 hotels in the UK.Johnson saw its revenue go up at £101.6m in the first-half compared to £96.1m last year.Profit before tax also increased by 45.5% to £6.4m against £4.4m last year.The group reported its textile rental business to be ahead of expectations. Earnings per share also rose 1.7p, compared to last year's 1.3p.However, cash and equivalents dropped slightly to £0.1m from £0.2m last year.Non-executive chairman Paul Moody said: "The board is continuing to seek further acquisitions in Textile Rental and to invest in additional capacity at existing locations. The significant increase in the interim dividend reflects the Board's confidence in the business going forward."The company announced a 25% increase in interim dividend to 0.5p compared to 0.4p last year.Andrew Gibb from Investec gave a 'buy' rate to the company and said the first-half performance was "strong" and momentum showing "no signs of abating"."Alongside the organic growth opportunities and given the strength of the balance sheet, we would also hope to see further acquisitions in the Textile space, which could further enhance current estimates," Gibb said.The company's shares were up 2.9% to 62p on Tuesday at 10:23.JF