Johnson Service Group PLC on Wednesday said it has begun the £10.0 million share buyback programme that it announced earlier this month.

The Cheshire, England-based textile services provider said the buyback ‘is prudent, reflects the cash generative ability of the group and maintains a strong balance sheet consistent with its capital allocation policy.’

The buyback be conducted by Investec Bank PLC. It will begin on Wednesday and end no later than March 1 next year. All shares repurchased will be cancelled to reduce the share capital of the company.

Johnson Service said it will assess the progress of the buyback from time to time in light of its capital allocation needs.

The buyback was announced on September 5, alongside the company’s interim results.

Pretax profit in the first half of 2023 surged to £13.5 million from £5.1 million a year prior. Revenue rose 22% to £215.0 million from £176.2 million.

The company declared an interim dividend of 0.9 pence per share, up from 0.8p a year prior.

Johnson Service shares were up 0.3% to 133.20p each on Wednesday morning in London.

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