Johnson Service Group (JSG) Trading update summary

Trading performance and revenue

• Group revenue for H1 2026 is expected at £258.0 million, broadly flat year-on-year.

• Workwear revenue grew to £74.0 million, while HORECA revenue softened to £184.0 million.

• Organic revenue growth in Workwear was 2.6%, driven by price increases; HORECA saw a 2.0% decline due to hospitality sector challenges.

• Pricing discipline maintained, with some market churn but ongoing customer retention and returns.

Operational efficiency and cost management

• Labour costs are proactively managed to maximize productivity and operational efficiencies.

• Energy costs are largely fixed for 2026 (85% electricity, 90% gas, 70% diesel), providing cost visibility.

• For 2027, 60% of electricity and 70% of gas needs are already fixed, with further hedging ongoing.

• Margin progression in H1 reflects strong operational cost management.

Capital allocation and balance sheet

• Capital allocation priorities: strong balance sheet, efficiency investments, accretive acquisitions, progressive dividend, and share buybacks.

• £55.0 million share buyback program announced; £17.3 million returned to shareholders by July 2026.

• Net debt at June 2026 was £190.0 million, with leverage at the lower end of the 1.0x–1.5x target range.

• Year-end leverage expected to remain similar, supported by increased H2 cash generation.