Johnson Service Group PLC (LON:JSG) has announced its Preliminary Results for the Year Ended 31 December 2025
Resilient sales performance and strong profit growth in FY25
The Board expects another year of growth and margin improvement in FY26
FINANCIAL HIGHLIGHTS
| 2025 | 2024 | Increase | |
| Adjusted results | |||
| Revenue | £535.4m | £513.4m | 4.3% |
| Adjusted operating profit1 | £72.5m | £62.3m | 16.4% |
| Adjusted operating profit margin1 | 13.5% | 12.1% | 140bp |
| Adjusted EBITDA margin1 | 31.2% | 29.7% | 150bp |
| Adjusted profit before taxation2 | £64.5m | £54.8m | 17.7% |
| Adjusted diluted earnings per share3 | 12.1p | 10.1p | 19.8% |
| Statutory results | |||
| Operating profit | £58.8m | £54.7m | 7.5% |
| Profit before taxation | £50.8m | £47.2m | 7.6% |
| Diluted earnings per share | 9.2p | 8.4p | 9.5% |
| Dividend | 4.8p | 4.0p | 20.0% |
Notes
1 ‘Adjusted EBITDA’ refers to operating profit before amortisation of intangible assets (excluding software amortisation) and exceptional items (defined as ‘adjusted operating profit’) plus the depreciation charge for property, plant and equipment, textile rental items and right of use assets, plus software amortisation.
2 ‘Adjusted profit before taxation’ refers to adjusted operating profit less total finance costs.
3 ‘Adjusted diluted earnings per share’ refers to diluted earnings per share calculated on adjusted profit after taxation.
– On an organic basis, revenue for the Group increased by 1.4% on 2024 levels (Hotel, Restaurant and Catering (‘HORECA’): +1.0%; Workwear +2.4%).
– Strong growth of 16.4% in adjusted operating profit to £72.5 million (2024: £62.3 million) resulting in an improved margin of 13.5% (2024: 12.1%), both in line with market expectations.
– Revenue within HORECA increased to £389.8 million (2024: £371.2 million) whilst adjusted operating profit increased to £59.8 million (2024: £49.4 million), giving a margin of 15.3% (2024: 13.3%).
– Workwear revenue increased to £145.6 million (2024: £142.2 million), with adjusted operating profit increasing to £21.0 million (2024: £20.3 million), giving a margin of 14.4% (2024: 14.3%).
– 20.0% increase in full year dividend, reflecting the Board’s confidence in the future.
– The £55.0 million of share buyback programmes announced in 2025 were completed in January 2026, bringing the total amount returned to Shareholders through share buybacks since 2022 to £90.3 million.
– Net debt increased to £159.2 million (December 2024: £115.6 million), reflecting capital investment across our estate of £35.9 million, the impact of the share buyback programmes undertaken during the year and dividend payments of £17.4 million, offset by the improved trading performance.
– Leverage, calculated as adjusted EBITDA compared to total net debt, was 0.95 times.
OPERATIONAL HIGHLIGHTS
– Reflective of the current uncertain economic outlook, overall HORECA volumes for the year were satisfactory and in line with our expectations, albeit with some regional and sector variations.
– Workwear volumes remain stable, benefitting from a combination of new installations and customer retention improving to 94% (2024: 93%).
– Energy costs continuing to reduce as a percentage of revenue.
– Price increases, together with productivity improvements as a result of our ongoing targeted investment in the business, helped to offset cost inflation.
– Fourth Sustainability Report published in June 2025.
– Gas and plastic reduction targets set for 2026.
OUTLOOK
– We are continuing to focus on expanding the Group through targeted investment in our existing sites and identifying further earnings enhancing opportunities to deploy capital.
– We have a strong balance sheet and a highly cash generative model, so are well placed to capitalise on appropriate opportunities as they arise.
– The Board will continue to actively review its options on further share buybacks throughout 2026.
– Notwithstanding the current economic uncertainty, particularly the impact of significantly increased labour and premises costs on some of our end customers, the Board expects to deliver another year of growth.
– We remain on track towards achieving our targeted adjusted operating margin of at least 14.0% in 2026.
Peter Egan, Chief Executive Officer of Johnson Service Group, commented:
“Our strong earnings growth and improved margin, in line with market expectations, reflects our investment to further improve operational efficiencies, continued focus on tight cost control and service excellence.
Our successful admission to the Main Market on 1 August 2025 marks a significant milestone in our growth journey. The move reflects our confidence in the Group’s future, our commitment to delivering long-term value for all stakeholders and positions us well for the next phase of growth. With robust cash generation, we continue to have a disciplined approach to capital allocation and focus on delivering value to shareholders, evaluating the balance between investing in our acquisition strategy, organic growth ambitions and returns to Shareholders.
Entering 2026, the regional and sector variations in HORECA volumes experienced in 2025 continued. Notwithstanding this, and recognising normal seasonality driving stronger trading over the summer months, we expect to deliver another year of growth across the Group and we remain on track towards achieving our target of an improved adjusted operating margin for 2026 of at least 14.0%. I would like to extend my thanks to all of our employees, whose hard work and significant contribution has helped to deliver this robust performance and outlook.”
SELL-SIDE ANALYSTS’ MEETING
A presentation for sell-side analysts will be held today at 09:30 at Investec Bank plc, 30 Gresham Street, London, EC2V 7QP, details of which will be distributed by Camarco. A copy of the presentation, together with a recording of the meeting, will be available on the Group’s website (www.jsg.com) following the meeting.
