Johnson Service Group PLC said on Tuesday it increased revenue last year, and is confident about its future growth prospects.

The Cheshire, England-based textile services provider expects to report a ‘strong performance’ for 2023, with total revenue rising to approximately £464.0 million from £385.7 million the year before. It said revenue increased by over 16% on an organic basis.

Johnson Service said its HORECA business increased revenue to £322.0 million from £251.1 million, as well as continuing to build volumes and processing capacity.

The Workwear business, meanwhile, increased its revenue to £142.0 million from £134.6 million. Despite ‘some reduction in customer demand’, Johnson Service said it saw ‘a continuation of the increased sales activity that we benefited from in the summer alongside the renewal of existing customer contracts’ in the second half of 2023.

Johnson Service had bank debt of around £62.0 million at December 31, up from £13.7 million one year prior. It said this reflected £29.7 million returned to shareholders through buybacks in 2023, as well as its acquisitions of Celtic Linen and Regency Laundry.

The company added that Celtic Linen, which it acquired on August 31, has so far traded well and in line with its own expectations.

Johnson Service also expects to report full-year adjusted operating profit in line with current market expectations. It plans to announce its full-year results in March.

Looking ahead, in the medium term, it ‘remains confident about future growth and performance...as we continue to expand our geographical coverage and processing capacity.’

On Tuesday morning in London, Johnson Service shares were up 0.7% at 139.70 pence each.

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