Johnson Service Group PLC on Wednesday remained confident of future progress, after seeing revenue rise in the first quarter of the year, and on the potential of current developments.

For the first three months of the year, the Cheshire, England-based textile rental, cleaning and care provider posted revenue of £114 million, up 16% from £98 million a year prior. Organic revenue growth was 8.9%.

Though this is typically the quietest quarter of the year, Johnson Service Group maintained that volumes in its Hotel, Restaurant & Catering segment met expectations.

Further, the group’s new site in Crawley remains on budget, and should begin tests in the next few weeks. However, adjusted operating profit is still expected to take a hit this year as a result, to the order of £3.7 million. The development should breakeven in 2026.

Elsewhere, Celtic Linen - which Johnson Service acquired in August last year - is performing ‘as expected’. The firm said it was ‘pleased’ with how the business was integrating into the wider group.

Looking forward, Johnson Service remained ‘encouraged’ by its medium-term prospects, both in terms of organic growth, and expansion through a targeted acquisition strategy.

Furthermore, the company was confident that, ‘as energy costs stabilise at lower levels and Crawley builds volume’, divisional margins will continue to return to pre-pandemic levels.

Shares in Johnson Service Group were 5.3% higher at 136.44 pence each in London on Wednesday morning.

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