Johnson Service Group Delivers Resilient 2025 Performance; Margin Expansion on Track

Johnson Service Group PLC (LON: JSG) has released a trading update for the full year 2025, showcasing a resilient sales performance and strong profit growth.

The textile services provider anticipates reporting a 4.3% increase in group revenue, reaching £535.6 million, compared to £513.4 million in 2024. HORECA revenue rose to £390.0 million (2024: £371.2 million), while Workwear revenue reached £145.6 million (2024: £142.2 million).

Organic revenue growth, a key indicator of underlying business strength, is expected to be around 1.4% for the Group, consistent with the first half of the year. This reflects the company's ability to expand its business without relying on acquisitions.

Tight cost control and improving efficiencies have translated into robust year-on-year adjusted operating profit growth, aligning with current market expectations. The company is making strides towards its stated target of achieving an operating profit margin of at least 14.0% in 2026.

HORECA trading demonstrated resilience in the final months of 2025, with expectations of 1.0% organic revenue growth for the year. Workwear volumes have remained stable, bolstered by new installations and a strong customer retention rate of 94%, leading to an anticipated 2.4% organic revenue growth for the year.

Net debt (excluding IFRS 16 lease liabilities) stood at approximately £112.0 million as of December 31, 2025, compared to £68.6 million at the end of 2024. This increase includes a £54.7 million cash outflow related to share buybacks, a move aimed at returning value to shareholders.

The company's £25.0 million share buyback program, initiated in September 2025, has been completed. Since 2022, JSG has returned a total of £90.3 million to shareholders through buybacks, signaling confidence in its financial position and future prospects.

JSG's management expresses confidence in the company's ability to capitalize on emerging opportunities. Despite the prevailing economic uncertainty, the board anticipates continued progress in 2026 and remains on track to achieve its targeted margin of at least 14.0%.

Full year results are scheduled for release in early March 2026, where more detailed financial information will be provided.