Johnson Service Group PLC
10 July 2026
10 July 2026
TIDM: JSG
Johnson Service Group PLC
("JSG", "the Group" or "the Company")
Trading Update for the Six Months Ended 30 June 2026
"We remain on track towards delivering our
targeted adjusted operating margin of at least 14.0% in 2026"
JSG, a leading textile services provider in the UK and Republic of Ireland, today releases its scheduled update on trading for the six months ended 30 June 2026.
Current Trading
Group revenue in the six months to 30 June 2026 is expected to be in line with the prior year at £258.0 million (2025: £257.5 million). Revenue in our Workwear business is expected to be £74.0 million (2025: £72.1 million), whilst revenue in HORECA is expected to be £184.0 million (2025: £185.4 million).
Group organic revenue in the six months to 30 June 2026 softened slightly to approximately (0.7%). Organic revenue growth within Workwear is expected to be 2.6%, largely reflective of the successful implementation of price increases. HORECA organic revenue performance was approximately (2.0%), reflecting the previously highlighted challenges within hospitality across the UK and Republic of Ireland; we anticipate that normal seasonality will support improved volumes over the remaining summer months.
Across both divisions, we continue to maintain a pricing discipline that reflects the quality and reliability of the service that we provide. Whilst this has resulted in market churn in certain instances, we continue to see customers choose, and return to, us in recognition of the strength and value of our service proposition.
Labour costs continue to be proactively managed across the Group through disciplined resource management, to maximise productivity, and targeted capital investment aimed at delivering operational efficiencies.
The Group's policy on energy remains to forward fix pricing on a rolling basis, building a position such that our near-term requirements are largely fixed, thereby providing us with a high degree of visibility over 2026 and 2027 energy costs. For 2026, the Group has fixed pricing in place for approximately 85% of its anticipated electricity usage and 90% of its anticipated gas usage and has also hedged approximately 70% of its anticipated diesel requirement. Looking ahead to 2027, the Group has fixed pricing for approximately 60% and 70% of its anticipated electricity and gas usage, respectively, and has also hedged approximately 20% of its anticipated diesel requirement. We will lock-in further prices on a rolling basis, in line with our established policy.
We are pleased with the expected margin progression in the first half of the year, which reflects our strong focus on operational cost management.
Capital Allocation and Share Buyback
Our capital allocation policy remains unchanged and takes into account: maintaining a strong balance sheet; investing in our estate to increase efficiency; appropriate accretive acquisitions; upholding a progressive dividend policy; and, to the extent that there remains surplus cash, returning it to Shareholders.
Under this framework, the Board announced a £55.0 million share buyback programme (the "Buyback Programme") in May 2026 which, as at 9 July 2026, will have returned £17.3 million to Shareholders.
The Board will continue to actively review its options on capital allocation, evaluating the balance between organic growth ambitions, investing in our acquisition strategy and returns to Shareholders.
Balance Sheet
The Group's medium to long-term intention is to maintain a capital structure such that we target leverage (net debt to adjusted EBITDA) of 1.0x - 1.5x, other than for short-term specific exceptions.
Net debt, including IFRS 16 liabilities, at the end of June 2026 was approximately £190.0 million (December 2025: £159.2 million), reflective of the timing of dividend payments, the Buyback Programme, working capital movements and capital expenditure, with leverage towards the lower end of our target range. Leverage at the year-end is expected to be similar to June 2026, reflective of the Group's increased cash generation in the second half of the year and the impact of the Buyback Programme.
Outlook
Workwear revenue remains stable, with customer retention and the implementation of price increases expected to benefit performance in the second half. Although volumes within HORECA in the first half of the year reflected the challenging trading environment within hospitality, we expect normal seasonality to support improved volumes over the remaining summer months. Whilst inflationary pressures continue, operating costs are being proactively managed across the Group.
Our strong balance sheet, well invested business and highly cash generative operating model will allow us to capitalise on further earnings enhancing opportunities as they arise, whilst also delivering continued returns to our Shareholders.
Accordingly, and notwithstanding the challenges being experienced within hospitality, the Board continues to expect to deliver another year of progress and margin improvement and, therefore, we remain on track towards achieving our targeted adjusted operating margin of at least 14.0% in 2026.
The results for the six months ended 30 June 2026 are due to be announced on 8 September 2026.
ENQUIRIES
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Johnson Service Group PLC Peter Egan, CEO |
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Ryan Govender, CFO |
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Tel: 020 3757 4992/4981 (on the day) |
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Tel: 01928 704 600 (thereafter) |
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Investec Bank plc |
Camarco (Financial PR) |
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David Flin |
Ginny Pulbrook |
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Virginia Bull |
Letaba Rimell |
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Tom Brookhouse |
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Tel: 020 7597 5970 |
Tel: 020 3757 4992/4981 |
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