Johnson Service Group plc (LSE:JSG) said demand for linen in hotels and restaurants is back to pre-Coronavirus (COVID-19) pandemic levels as a result of the staycation boom.
Compared to 11% of normal in the first three months of 2021, hospitality volumes recovered to 70% in June and 80% in August, the linen and workwear group said.
Getting staff to cope with the rising demand had been a problem, but this has now eased, said the statement.
Workwear was less affected by lockdown restrictions and in June was running at 98% of pre-COVID-19 levels.
Revenues in the half-year to June 2021 were £99.6mln (£115mln), while the group posted a loss of £14mln (£18.6mln). Underlying profits dropped to £17mln from £25mln.
There was no interim dividend with net debt at the period-end rising to £46.9mln (£33.6mln).
Peter Egan, chief executive, said: "During the first half, we have experienced a consistently robust performance from our Workwear business and a notable return of demand in HORECA (Hotel/Restaurant/Catering), particularly driven by the staycation activity in early summer.
“In the absence of increased restrictions, we expect that we will announce results for the year towards the higher end of current market expectations.”