Portfolio

Johnson Service Group trading in line despite Omicron challenges

By Josh White

Date: Thursday 13 Jan 2022

Johnson Service Group trading in line despite Omicron challenges

(Sharecast News) - Textile service provider Johnson Service Group said in a trading update on Thursday that volumes during November and December were in line with pre-Covid normalised levels for workwear, and were about 77% of normal within the hotel, restaurant and cafe (HoReCa) sector.
The AIM-traded firm did note, however, that the challenges of the new Omicron variant of Covid-19 in the hospitality sector in the last two weeks of December reduced volumes to about 60% of normal.

Notwithstanding that, the company said it still expected to announce 2021 full-year results ahead of its expectations outlined on 24 November.

"Current Covid-19 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," the JSG board said in its statement.

It said cost pressures, particularly in relation to energy, were 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."

JSG said it would make a further update with its full-year results in March.

At 1505 GMT, shares in Johnson Service Group were up 1.57% at 142.6p.

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