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JSG revenues and profits up after strong H1

By BFN News | 07:24 AM | Monday 04 September, 2017

Johnson Service Group saw double-digit increases in revenues and profits following another strong performance in the six months to the end of June and separately announced that chief executive Chris Sander would step down in 2018 after 33 years with the group. The group said the strong financial performance reflected both strong organic growth of 4.8% together with the benefits of recent acquisitions. Continuing revenue increased by 19.3% to £138.0 million (June 2016: £115.7 million). It said this was driven by strong organic growth of some 4.8% and a full six months of trading from the acquisitions completed in 2016. Adjusted operating profit increased by 20.0% to £18.6 million (June 2016: £15.5 million). Adjusted profit before taxation increased to £16.8 million (June 2016: £13.6 million) after net finance costs of £1.8 million (June 2016: £1.9 million). The underlying tax rate was 19.4% (June 2016: 20.3%). There were no exceptional items in the first half of 2017 (June 2016: £0.7 million). The statutory profit before tax after amortisation of intangible assets (excluding software amortisation) of £3.9 million (June 2016: £3.0 million) increased by 30.3% to £12.9 million (June 2016: £9.9 million). Continuing adjusted fully diluted earnings per share increased by 15.6% to 3.7 pence (June 2016: 3.2 pence). Fully diluted earnings per share from continuing operations after amortisation of intangible assets (excluding software amortisation) and exceptional items increased to 2.8 pence (June 2016: 2.3 pence). The group declared an interim dividend of 0.9p per share - up 12.5%. Sander said: "Our well planned strategy, combined with continued capital investment driving operational efficiencies, has enabled us to deliver another strong set of results. "We are well placed to exploit the opportunities that exist within our market sectors and the exceptional performance across all of our brands gives us confidence that this will continue in the second half. "We therefore expect results for the full year to be slightly ahead of current market expectations." Separately, the group announced that Sander would retire in the first half of 2018. It said the board had commenced a detailed process, both internally and externally, to identify a successor. It said that in order to ensure a smooth handover, Sander remained flexible over the date of his retirement in the first half of 2018 and would remain available to assist his successor in the initial handover period. Chairman Paul Moody said: "The board makes this announcement with a degree of sadness. "It has been a genuine privilege to work with Chris; under his leadership, JSG has made enormous progress. "The group has grown significantly in recent years, enlarging its presence geographically and building its position in chosen markets. "Our strong platform of textile rental businesses is supported by a highly committed and talented management team; the Board continues to see significant opportunities for JSG in the future." Story provided by

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