Celtic Linen owner Johnson Service Group (JSG) grew profits by 14 per cent to £28.7 million (€33 million) in the first six months of this year, its interim results show.
JSG, which supplies textiles and workwear to the catering and healthcare industries, acquired Irish-based Celtic Linen in 2023 and employs 560 staff across three Irish bases in Belfast, Dublin and Wexford.
Revenue in the period increased by 5.5 per cent to £257.5 million, while adjusted earnings before interest, taxes, depreciation, and amortisation was up from £69.2 million to £75.4 million, giving an improved margin of 29.3 per cent.
Total finance costs were £3.8 million, up from £3.7 million, which reflected higher borrowings over the period, most notably as a result of a £16.8 million cash outflow as part of its recent £30 million share buyback programme.
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An increased interim dividend of 1.6 pence per share, up from 1.3 pence per share, will be paid on November 4th. The company said it intends to launch a further share buyback programme up to £25 million over the period to March 2026.
“We are confident in reporting a full-year adjusted operating profit in line with current market expectations and achieving an overall group adjusted operating profit margin of at least 14 per cent by 2026,” it said.
Labour costs as a percentage of revenue increased from 44.7 per cent to 46.4 per cent following increases to the minimum wage and pay-related social insurance in Ireland and Britain.
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JSG chief executive Peter Egan said he was “pleased” with what he termed “further progress” in the first half of 2025.
“Our continued focus on operational excellence and margin improvement has positioned us well to achieve our target of at least a 14 per cent adjusted operating profit margin in 2026 and we are on track to meet full-year adjusted operating profit in line with market expectations,” he said.
Mr Egan said the company’s successful admission to London’s main market on August 1st marked a “significant milestone”, and reflected “the strength and maturity of our business”.
“With robust cash generation, we continue to have a disciplined approach to capital allocation and focus on delivering value to shareholders by driving efficiencies through ongoing investment across the estate and seeking out complementary acquisition opportunities,” he added.
