Johnson Service Group PLC on Wednesday said its revenue inched up in the first quarter of 2022, and the textile services firm said energy price pressures have calmed recently.
The company also said it plans to reinstate its dividend. It did not declare a dividend in 2021 or 2020.
Shares in the company closed up 9.2% at 113.80 pence each in London on Wednesday.
The AIM listing said workwear volumes have been ‘stable’, leading to like-for-like revenue growth of more than 3% year-on-year in the first three months of 2022.
In March, volumes in the food service industry reached 89% of pre-virus levels, improved from 85% in February and 70% in January. In April, so after the first quarter, volumes averaged at 91% of normal levels.
‘Our customers are expecting a strong summer season and we have plans in place to ensure that our processing capacity can meet this increasing demand. In addition, there is an encouraging pipeline of new business opportunities comprising both new openings from existing customers as well as new customers,’ the company said.
‘We are nearing the completion of the major capital investment projects in Belfast and at our largest linen plant in Bourne in line with those plans.’
Johnson Service said ‘inflationary pressures remain’, though reassuringly, energy costs have eased from the highs of early March.
The company added: ‘Some 87% of our anticipated gas requirement for the remainder of this year is fixed at prices significantly below the current day ahead rate. We have secured price increases across our customer base which will offset the cost inflation that we are experiencing in the current environment and we will continue to take appropriate mitigating actions as necessary.
‘Volumes are continuing to improve to what we expect to be more predictable and normal levels. Reflecting this expectation, it is the board’s current intention to re-commence dividend payments at the time of the interim results announcement in September 2022.’
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