Johnson Service Group (JSG) H2 2025 earnings summary

Executive summary

• Revenue increased by 4.3% to GBP 535.4 million in 2025, driven by price increases, acquisitions, and resilient sales performance.

• Organic revenue growth was 1.4%, with HORECA up 1% and Workwear up 2.4%; Workwear customer retention reached 94%.

• Adjusted operating profit rose 16.4% to GBP 72.5 million, with margin improving to 13.5%.

• Completed GBP 55 million share buyback in January 2026, returning GBP 90.3 million to shareholders since 2022.

• Sustainability initiatives delivered a 14% reduction in carbon intensity, 20% reduction in water intensity, and 23% reduction in single-use plastic purchased; new targets set for 2026.

Financial highlights

• Adjusted EPS grew 19.8% to GBP 0.121; adjusted diluted EPS rose to 12.1p from 10.1p.

• Full year dividend proposed at GBP 0.048 per share, a 20% increase, maintaining a 2.5x cover.

• Return on capital employed improved to 17.1%, surpassing 2019 levels.

• Net debt increased to GBP 159.2 million, with leverage at 0.95x.

• Energy costs reduced to 7.4% of revenue from 8.8% in 2024.

Outlook and guidance

• Targeting adjusted operating margin of at least 14% for 2026.

• Expect labor costs as a percentage of revenue to remain stable in 2026.

• Anticipate further reduction in energy costs as a percentage of revenue due to fixed contracts.

• Net debt expected to reduce by end of 2026 absent further buybacks or acquisitions.

• Continued focus on targeted investment and potential further share buybacks in 2026.