Johnson Service Group plc (LON:JSG) rose on Monday after raising its full-year dividend to reflect “confidence” in future prospects.
The workwear and linen supplier increased the annual payout by 13% to 3.5p per share and said trading in the first months of 2020 has been in line with expectations.
READ: Johnson Service says full year to be “slightly ahead” of expectations; completes acquisition
The textile company has been expanding through acquisitions as well as boosting capacity at its existing sites.
In the year to 31 December, revenue advanced 9% to £350mln with profit before tax up 15% to £38mln.
Net debt rose 23% to £127mln after applying new accounting rules.
Analysts at Peel Hunt raised the target price to 220p from 196p on the back of Monday's results.
"Johnson looks well placed to continue to exploit the benefits of scale arising from its market leadership position and to continue its successful market consolidation strategy," analysts commented.
Shares rose 5% to 191.5p on Monday at the opening bell.
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