Johnson Service Group plc (LON:JSG), which launders and supplies linen tablecloths, napkins and uniforms to restaurants and hotels, has told investors that its 2017 results will be better than expected.
Johnson said it has continued to trade well in the second half of the year, with full-year results – due on 27 February – now expected to be slightly ahead of management’s revised forecasts.
New acquisition
With the success of recent purchases it is perhaps no surprise that the company has today announced the acquisition of hotel and catering linen business StarCounty for £3.9mln.
The deal for the Wrexham-based firm includes a freehold site worth £0.9mln and will extend the coverage of Johnson’s Stalbridge Linen brand across the North West and West Midlands.
“We are delighted with another period of strong trading,” said chief executive Chris Sander.
“In addition, the acquisition of StarCounty announced today helps us further develop the business in line with our strategy, increasing our presence in the North West and the West Midlands and enhancing the quality of service we can offer our customers in the region.”
Johnson shares opened 2.5% higher at 145.2p.