Workwear and linen supplier Johnson Service Group plc (LON:JSG) said it expects full-year results to meet market forecasts after expanding the business on the back of demand for its services.
In a trading update for the six months to December 31, the group said it continued to trade well in the period as it completed a £3.3mln investment in its Stalbridge Linen unit in London.
READ: Johnson Service Group expects full-year results to be ’slightly’ ahead of market expectations
The investment included the refurbishment, expansion and rebranding of Caterers Linen as Stalbridge Linen, which provides linen hire and laundry services for hotels and catering businesses.
The South West Laundry business, which the firm acquired in August last year, has been integrated into Stalbridge brand.
Johnson Services also confirmed a contract with a developer to build and lease a new laundry in the North of England, which is expected to be completed in 2020.
Chief executive Peter Egan said: “Our strategy continues to be driving growth both organically and through acquisition. The capital investment across our estate continues with the planned building of a new laundry which will significantly increase the capacity of our high volume linen business to meet our customers' needs and to underpin future organic growth.”