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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

Johnson Service Group - Expansion of textile rental side pays dividends

August 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • JSG
  • Price:
  • 88p
Shares in Johnson Service Group have enjoyed a terrific run in the past couple of years. The company is best-known for its high street dry cleaning stores but increased competition from the likes of Morrisons and Timpson have driven margins on this side to wafer thin levels and the more profitable business is now its B-2-B textile rental division. That switch has worked a treat and helped by several strategic acquisitions Johnson has enjoyed a giddy six months with three broker upgrades and Investec now expects eps to rise from 3.4p in 2012 to 5.9p this year.Johnson’s mainstay is now its textile rental division (93% forecast 2015 operating profit), with operations straddling two parts of this £1.2bn industry. These incl ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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