Johnson Service, the U.K. textile rental company, announced that its pretax profit more than doubled in the first half of the year. This increase is mainly attributed to improved market conditions. As a result, the company has plans to launch a buyback program worth up to £10.0 million ($12.6 million).
During the half-year period, pretax profit rose to £13.5 million, compared to £5.1 million during the same period last year. In addition, revenue experienced a 22% climb, reaching £215.0 million. Adjusted earnings before interest, taxes, depreciation, and amortization also rose to £57.7 million, rising from £42.8 million in the previous year.
These positive results can be attributed to a return to more normal and predictable trading patterns, as well as effective cost management and improved production efficiencies.
Looking ahead, Johnson Service is optimistic about its full-year results, expecting them to surpass the guidance provided in its July trading update. Additionally, the company declared an interim dividend of 0.9 pence per share, a slight increase from 0.8 pence in the previous year.
Furthermore, Johnson Service will be launching a share buyback program later this month, amounting to £10.0 million. This will be the second buyback program initiated by the company this year.
