Shares in textile services business Johnson Service Group (JSG) surged late last week as the group announced that results for the six months to December 2017 were expected to be “slightly ahead of management expectations”.
IC TIP:
Buy
at
144p
Johnson Service completed the exit from its troubled dry cleaning business last year, shifting its focus to higher-margin textile services work. Since then it has completed a number of deals aimed at strengthening operations across the UK. Alongside the trading update last week, it announced the acquisition of StarCounty Textile Services, a hotel and catering linen business. The deal will strengthen JSG’s linen brand across the north-west and West Midlands.