For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

In contrast to all that, many investors prefer to focus on companies like Johnson Service Group (LON:JSG), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

See our latest analysis for Johnson Service Group

Johnson Service Group's Improving Profits

Johnson Service Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Johnson Service Group's EPS shot up from UK￡0.05 to UK￡0.082; a result that's bound to keep shareholders happy. That's a impressive gain of 64%.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Johnson Service Group remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 22% to UK￡425m. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Johnson Service Group's future profits.

Are Johnson Service Group Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions.

The good news for Johnson Service Group shareholders is that no insiders reported selling shares in the last year. With that in mind, it's heartening that Peter Egan, the CEO, Executive Director and Director of Health of the company, paid UK￡29k for shares at around UK￡1.17 each. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in Johnson Service Group.