Pre-Close Trading Update

JSG, a leading textile services provider in the UK and Republic of Ireland ('ROI'), today releases an update on trading.

We expect to announce a strong performance, with total revenue for the year ended 31 December 2023 of approximately £464.0 million (2022: £385.7 million). The HORECA business achieved revenue of £322.0 million (2022: £251.1 million) and the Workwear business £142.0 million (2022: £134.6 million). On an organic basis, revenue has increased by more than 16 per cent on 2022 levels.

HORECA volumes have continued to build and we are continuing to add processing capacity at a number of our sites to accommodate additional volume as we move into the spring of 2024. Our new state-of-the-art site in Crawley is progressing well and remains on schedule to open in the second half of 2024.

Celtic Linen, which was acquired on 31 August 2023 and is based in ROI, has traded well and in line with our expectations. The capital investment in its main Wexford site has been completed to budget and employees are welcoming the opportunity to be part of a wider group operating within the textile rental market.

As previously highlighted, Workwear saw some reduction in customer demand however, in the second half of the year we have seen a continuation of the increased sales activity that we benefited from in the summer alongside the renewal of existing customer contracts. Our sales activity is also supported by the launch of a range of innovative garments for specific sectors and our strong commitment to high levels of customer service.

We are continuing to proactively manage our cost base against the backdrop of increasing labour costs. We are maintaining our policy on fixing our energy pricing, where possible, on a gradual basis such that the closer we are to a date, the higher our fixed percentage will be. We have now secured fixed prices for approximately 80 per cent of our anticipated gas and electricity requirement for 2024 with further agreements, at a reducing level, into 2025 and 2026.

Bank debt (excluding IFRS 16) at 31 December 2023 was approximately £62.0 million (31 December 2022: £13.7 million) and reflects the completed share buy-back programmes which returned £29.7 million to Shareholders during 2023, the acquisitions of Celtic Linen and Regency Laundry and continued significant investment in our plant network.

We expect to report full year adjusted operating profit in line with current market expectations. The Board remains confident about future growth and performance over the medium term as we continue to expand our geographical coverage and processing capacity.

Full year results are expected to be announced in March 2024.