Johnson Service Share Discussion Threads

[my retirement fund] 27/9/2022 17:26

what do you make of the weakness ? recession impact on sales, increasing energy costs, increasing finances, all of the above ?

[wad collector] 27/9/2022 15:25

Christ that's a seven year low now. Ouch. Hold and hope I guess.

[my retirement fund] 07/9/2022 15:30

Silent, rather than solent

well how many shops do they have these days doing repairs and alterations, that sector should do well in the squeezed economy

[wad collector] 07/9/2022 15:20

Not sure I am solent , definitely insolent , must confess just noticed the interims and that one CEO buy.

Compared to the last pre-covid 2019 interims, the adjusted EPS is about half , though pleased to see the debt is also almost down by half. The share price then was about twice where it is now . The bigger question is what is going to happen to the sector now ; hard to be very upbeat about it . Hard to see either workwear volumes , or industrial laundries surging ahead!

[my retirement fund] 02/9/2022 14:18

That was staggering volume yesterday and the director spent some of his own money. Its quiet here, and solent followers have a view here on the update?

[wad collector] 26/7/2022 09:23

Inline rather than Good I reckon , almost same wording as the May statement. Let us hope the worst is behind JHD now.
If it returns to prepandemic profit levels then looking at about 7p EPS which would make current prospective P/E of 14 , which seems a reasonable price but not a stunning bargain.

[shepc] 26/7/2022 08:30

Good update & divi coming back too, expected a bigger surge, maybe a slow climb?

[wad collector] 04/5/2022 19:06

Divis back on the horizon....

("JSG" or "the Group")

AGM Statement

JSG, a leading UK textile services provider, will be holding its Annual General Meeting today and will make the following statement:

"Workwear volumes are remaining stable leading to like-for-like revenue growth in excess of 3% compared to the first quarter of 2021. In HORECA, as previously stated, the volumes in January and February were 70% and 85%, respectively, of normal. Volumes improved further in March to 89% of normal whilst like-for-like revenue in the month, compared to 2019, was up 1.2%. Volumes continued to increase in the first half of April, averaging 91% of normal. Our customers are expecting a strong summer season and we have plans in place to ensure that our processing capacity can meet this increasing demand. In addition, there is an encouraging pipeline of new business opportunities comprising both new openings from existing customers as well as new customers.

We are nearing the completion of the major capital investment projects in Belfast and at our largest linen plant in Bourne in line with those plans.

Inflationary pressures remain but energy costs, in particular, have currently receded from the highs of early March. Some 87% of our anticipated gas requirement for the remainder of this year is fixed at prices significantly below the current day ahead rate. We have secured price increases across our customer base which will offset the cost inflation that we are experiencing in the current environment and we will continue to take appropriate mitigating actions as necessary.

Volumes are continuing to improve to what we expect to be more predictable and normal levels. Reflecting this expectation, it is the Board's current intention to re-commence dividend payments at the time of the Interim results announcement in September 2022.

We remain confident in our medium and long-term growth prospects."

[km18] 09/3/2022 11:53

Johnson Service comprises departments providing textile rental and related services across a range of sectors throughout the UK. The Company’s segments include Workwear, Hotel, Restaurant and Catering (HORECA) and All Other Segments, which in turn enabled the firm to derive multiple sources of income and thereby forcing up total revenue to £271.4m in 2021 from £229.8m in 2020. Given the revenue hike, profit simultaneously rallied to £9.4m in 2021 from (£16.8m) loss in 2020. Subsequently, the group achieved a robust balance sheet and has capacity for further investment, since the firm is able to fund its operations, investing and financing activities effectively while attracting a wide variety of stakeholders. Consequently, it implies that Johnson Service is planning to optimise capital received from shareholders and retain profits to invest and achieve organic growth. This evidence is supported by the EV/EBITDA of 7.07, indicating that the firm has an attractive intrinsic value while offering a robust dividend yield of 2.47%. Despite the plausible profit rally and diversified funding structure, Johnson Service is still trading at a discount, since its low P/E ratio stands at 12.7, which is lower than the industrials P/E ratio of 15x. Consequently, it implies that the security is undervalued and is expected to surge in value, as illustrated by the EPS growth of 35%.



Keep up to date with Wealth Oracle AM

[wad collector] 08/3/2022 13:20

Preliminary Results for the Year Ended 31 December 2021

"Improving volumes and confidence for the longer term"

FINANCIAL PERFORMANCE

-- Total revenue of GBP271.4 million (2020: GBP229.8 million).

-- Adjusted EBITDA(1) of GBP67.9 million (2020: GBP53.6 million) with margin of 25.0% (2020: 23.3%).

-- Adjusted Profit before Taxation(2) of GBP9.4 million (2020: Adjusted Loss before Taxation(2,3) GBP16.8 million).

-- Profit before Taxation of GBP5.1 million (2020: Loss before Taxation(3) GBP32.1 million).

-- Net debt excluding IFRS 16 liabilities at December 2021 of GBP22.3 million (December 2020: net cash GBP6.6 million) reflecting increased sales and continuing capital investment.

-- Net debt at December 2021 of GBP60.1 million (December 2020: GBP33.6 million).

-- As previously guided, no dividend declared in respect of 2021.

-- Strong balance sheet and capacity for further investment.



We remain very confident that the business is well positioned for growth in the medium to long term."




Hmm, look at that debt rise. Difficult times continue but jam tomorrow?

[wad collector] 18/1/2022 13:32

LAST WEEK;


Volumes during November and December were in-line with pre-Covid normalised levels for Workwear and were approximately 77% of normal within HORECA. However, the challenges of the new COVID-19 variant on the hospitality sector in the final two weeks of December reduced volumes during that period to approximately 60% of normal. Notwithstanding this, we expect to announce 2021 full year results ahead of the expectations referred to in our Trading Update published on 24 November 2021.

Current COVID case rates have continued to impact demand at the start of 2022 in HORECA but we continue to anticipate further recovery of the hospitality sector as we progress through 2022.

Cost pressures, particularly in relation to energy, are ongoing. Although we have taken action and fixed our gas prices for over 80% of our consumption for 2022, the current high price on the remaining 20% will impact our total cost. We are continuing to work hard to mitigate the impact of cost increases on our business for 2022 and beyond. We will give a further update on our progress when we announce our full year results in March 2022.

[wad collector] 01/1/2022 23:32

New year started with a 3 month high , hope that is portentous.

[wad collector] 21/11/2021 21:23

IC just put a SELL recommendation , with rising costs and flat revenues, FWIW.

[wad collector] 09/11/2021 09:45

Well that hold advice has been wrong so far ; slid another 10% since then. It appears that recovery optimism in the sector was premature.

[philanderer] 07/9/2021 10:27

wad, thanks. I'll keep it on the watchlist for now.


'A hotel without linen is not a hotel'

[wad collector] 07/9/2021 08:31

Article in IC concludes JSG a Hold.

[wad collector] 03/9/2021 18:32

Well they were illuminating , but bit of a mixed bag. "Still losing, no divi, improving but wary of predicting anything "is about the summary.

[wad collector] 19/8/2021 12:59

Interims in a couple of weeks should be illuminating.

[philanderer] 16/7/2021 14:05

Rerating of JSG reflects prime position, says Peel Hunt

The rerating of textile rental and cleaning company Johnson Service Group (JSG) reflects its market-leading position and high margins, says Peel Hunt.

Analyst Christopher Bamberry retained his ‘add’ recommendation and target price of 168p on the stock, which closed down 2.6%, or 4.2p, at 160p on Thursday after a trading update.

He said the shares trade on a multiple of 19.7x 2022 earnings per share versus 19.6x immediately prior to Covid-19, and an average of 15.3x since the disposal of its dry cleaning business.

‘The premium rating reflects Johnson’s market-leading positions, high margins, strong underlying cash generation, good return on capital employed, and the potential for further market share gains, both organic and inorganic,’ said Bamberry.

He said if ‘we place Johnson’s recovered EBITDA on the same 7.7x as [Denmark’s] Berendsen was acquired for in September 2017, this results in a valuation of 200p per share’.

[johnwise] 03/6/2021 14:13

Johnson Service Group PLC Holding(s) in Company

01/06/2021 8:46am

UK Regulatory (RNS & others)

BlackRock, Inc

[wad collector] 01/6/2021 10:44

Looks like we are back to 2019 share price again. Time to keep holding and prosper a bit more I reckon.

[liberatingsteptoe] 27/5/2021 17:36

A bit of a buy........ What does it portend?
Ls

[liberatingsteptoe] 05/5/2021 11:40

Looks like the horrors of the last year have finally been washed out. The smell of nice clean laundry finally.
Ls