Johnson Service Group (JSG) H2 2023 earnings summary

Executive summary

• Strong FY23 performance amid macroeconomic pressures, with revenue, adjusted EBITDA and adjusted operating profit ahead of 2022; outlook cites continued trading momentum and confidence in medium- and long-term growth.

• Growth supported by organic activity, targeted site investment and the Regency and Celtic Linen acquisitions; expansion plans include a new Crawley processing site and London depot.

Financial highlights

• Revenue £465.3m vs £385.7m in 2022; adjusted EBITDA £131.5m vs £104.9m and adjusted operating profit £50.5m vs £41.2m.

• Adjusted EBITDA margin 28.3% vs 27.2%; adjusted operating margin 10.9% vs 10.7%; adjusted PBT £44.5m vs £38.2m.

• Adjusted diluted EPS 7.8p vs 8.0p; excluding the super-deduction tax benefit, adjusted diluted EPS was 7.7p vs 7.2p.

• Dividend 2.8p vs 2.4p per share; final proposed 2023 dividend 1.9p vs 1.6p.

Outlook and guidance

• Board expects FY24 adjusted operating profit in line with current market expectations.

• Encouraging trading momentum, proactive cost management and improving divisional EBITDA margins; recent acquisitions are being integrated and expanded.

• Growth plans combine targeted investment in existing sites, the Crawley facility, a new London-market depot and selective acquisition opportunities.

• Strong balance sheet expected to support organic investment, M&A and enhanced shareholder returns; medium- and long-term growth outlook remains confident.