Johnson Service Share Discussion Threads

[wad collector] 01/9/2023 14:00

Yes it looks like a synergistic acquisition and ignoring any cost savings , the price seems competitive. Of course it is hard to now if there are hidden problems, why are they selling? Wonder why they didn't await results day to announce?
SP likes ir ' moving towards an 18 month high.

[philanderer] 01/9/2023 10:09

And a positive reaction to today's acquisition announcement.

[philanderer] 31/8/2023 12:48

Results next tuesday.

[philanderer] 07/8/2023 11:03

Johnson Service’s first half recovery impresses Berenberg


Volume and margin recovery is playing out at textile rental company Johnson Service Group (JSG), says Berenberg.

Analyst Calum Battersby reiterated his ‘buy’ recommendation and target price of 155p on the stock, which dipped 2.6% to 111.6p last week.

First-half results from the group showed ‘perfect evidence of our investment thesis’, said Battersby, as it upgraded full-year expectations given both volumes and margins coming in ahead of prior assumptions.

‘Our view remains that consensus forecasts for Johnson Service are highly conservative, that volumes from the pandemic-affected prior periods will rise materially year on year, and that the company will continue to see operating margins steadily recover towards the 15% achieved pre-pandemic,’ he said.

Inflated energy costs may be providing a headwind but falling gas and electricity prices ‘imply a significant profit tailwind’ in the second half of this year and next year.

‘We believe that ongoing efficiency savings and price increases will drive a further margin recovery thereafter,’ said Battersby.


citywire.com

[shepc] 02/8/2023 15:57

Thought it worth a top up at this price, no reason to suspect things have gone down since last update that I can think of

[philanderer] 17/7/2023 10:08

RBC raises Johnson Service Group target to 125 (120) pence - 'sector perform'

[km18] 14/7/2023 13:34

Johnson Service Group issued a pre-close trading update this morning. Group revenue in the six months to 30 June 2023 is expected to be £215.0 million and up 20.6% on an organic basis on 2022 levels. Performance was strong in both Workwear business atf £71.0 million (2022: £66.0 million) and in HORECA £144.0 million (2022: £110.2 million). Whilst inflationary pressures continue and energy markets remain volatile, management now have more certainty on the cost outlook in the short term and therefore are confident in reporting full year adjusted operating profit slightly ahead of current market expectations. Valuation is average, the balance sheet is strong, profitability ratios are decent. Share price has bounced this morning, but lacks more medium term momentum for now. JSG is a share to monitor for the time being...

...from WealthOracle

[wad collector] 14/7/2023 09:44

"assuming the trading environment remains unchanged, we will report full year adjusted operating profit slightly ahead of current market expectations."
So bit of wriggle room there but hopefully the recent share price weakness will now reverse.

[shepc] 14/7/2023 09:37

Thought it would jump a little higher after such a strong update, maybe it needs to sink in...

[wad collector] 10/4/2023 15:13

Xd 1.6p this week.

[wad collector] 06/4/2023 08:24

That is an encouraging 6 month chart, maybe the prepandemic £2 share price is feasible over the next year or so. It has a funny mix of clients , from the hospitality industry to the uniform wearing occupations.
It was more of a retail dry cleaning company when I first invested , but they tried unsuccessfully to sell off the branches and eventually closed most of them before Timpsons bought the rest, but kept the Johnsons label.

[philanderer] 16/3/2023 11:32

Johnson Services to recover lost margins, says Berenberg


Textile rental group Johnson Services (JSG) is a market leader that is set to deliver profit recovery, says Berenberg.

Analyst Calum Battersby reiterated his ‘buy’ recommendation but reduced the target price from 180p to 155p on the stock, which fell 2.9%, or 3.4p, to 115.4p on Wednesday.

Full-year results were in line with upgraded expectations, confirming the group is ‘experiencing a strong recovery in revenues offset by material inflationary pressures, in particular from energy and labour’.

‘While this means we reduce our future forecasts, we consider the group’s outlook highly encouraging,’ said Battersby.

‘Alongside a continued recovery in revenues from the pandemic-impacted prior periods, we expect Johnson Services to recover its lost margins over the coming years, made possible by the group’s significant scale advantages and greater ability to invest in more efficient technologies compared to smaller peers.’

He said the ‘recovery story will play out over coming years’ and combined with a strong balance sheet means there is ‘upside to both future forecasts and the company’s rating from here’.


CITYWIRE.COM

[wad collector] 09/3/2023 17:15

Knocking on the door of a 1 year high now. The days of a penny share would appear to be behind us.

[wad collector] 07/3/2023 20:45

I was looking back at the last yrs before covid, the turnover now of 385m is nicely in line with the 350 and 320 of 2018 and 2019.
However the pretax profit of 30M (Depending on which figures you use) is a step down from the 52M and 46M of those years.
So looking crudely at the share price of 150-200p during those yrs is not pointing to a much higher value than today's closing price of 117p.
Unfortunately I bought mine in the heady days of 2005 for about £4 when the divi was about 15p.

[my retirement fund] 07/3/2023 11:48

Exceeded ? erm no: After considering the current economic environment, including the recent, and possibly further, increases in UK interest rates and the subsequent impact on our cost of borrowing, the Board expects the result for the year to be in line with market expectations.


given its on double digit PE ratio looks fairly valued for now

[whites123] 07/3/2023 07:20

Happy... :-)

Exceeded expectations methinks. :-)

BUY.

[wad collector] 03/3/2023 18:35

Finals Tuesday.

[wad collector] 07/2/2023 21:06

I think the logic for the buybacks is the same as for BP and Shell. The management is trying to protect us shareholders from a windfall tax by not increasing the dividend and then the press won't protest about fat cats trousering big profits.

[my retirement fund] 25/1/2023 21:09

Yes, they are going to struggle with higher energy inputs eventually, though so quite how far these can go is a conundrum. Buying back shares at an elevated rate rather than keeping cash for keeping the estate fresh and revamped and paying a dividend would be sanity, increasing eps by reducing equity does not smack of a management bunch of businesses savvy people

[wad collector] 25/1/2023 20:06

This looks promising , seems to have broken that 100p level.

[wad collector] 13/1/2023 13:11

'JSG' or 'the Group')

Pre-Close Update

"Full year outturn is expected to be in line"

JSG, a leading UK textile services provider, today releases an update on trading.

Trading continued to improve during the second half of 2022, and we expect to announce full year revenue of approximately GBP385 million (2021: GBP271.4 million). Revenue in our Workwear business is expected to be GBP134.5 million and in HORECA, GBP250.5 million. On an organic basis, revenue is expected to have increased by almost 40% on 2021 levels and, on the same basis, be 2.6% higher than the pre-pandemic revenue posted for 2019.

HORECA volumes have increased slightly and were over 93% of normal in the final quarter, helped by the installation of new customers during the second half.

Whilst cost inflation remains a challenge, we continue to take appropriate actions to mitigate the impact. We have also traded further in the energy market such that some 65% of our anticipated gas requirement and 55% of our anticipated electricity requirement for 2023 is now fixed.

Year end net debt, excluding IFRS 16 liabilities, is expected to be approximately GBP14 million. The share buyback programme announced in September is ongoing with GBP5.6 million of cash utilised as at 31 December 2022.

The full year outturn is expected to be in line with current market expectations.

Full year results are expected to be announced in March 2023.

[coolen] 27/9/2022 21:44

I saw a report that HSBC downgraded to "Hold". Anyone seen or heard the reasoning ?