Johnson Service Group PLC
LSE:JSG
Johnson Service Group PLC
Johnson Service Group Plc engages in the provision of textile rental and related services to both consumers and businesses. The company is headquartered in Preston Brook, Cheshire and currently employs 4,980 full-time employees. The Company’s segments include Workwear, Hotel, Restaurant and Catering (HORECA) and All Other Segments. The Workwear is a supplier of workwear and protective wear in the United Kingdom, offering services through its Johnsons Workwear brand. The Company’s HORECA business provides premium linen services to the hotel, restaurant and catering markets through the Johnsons Hotel Linen, Johnsons Hotel, Restaurant & Catering Linen and Johnsons Restaurant & Catering Linen brands.
Johnson Service Group Plc engages in the provision of textile rental and related services to both consumers and businesses. The company is headquartered in Preston Brook, Cheshire and currently employs 4,980 full-time employees. The Company’s segments include Workwear, Hotel, Restaurant and Catering (HORECA) and All Other Segments. The Workwear is a supplier of workwear and protective wear in the United Kingdom, offering services through its Johnsons Workwear brand. The Company’s HORECA business provides premium linen services to the hotel, restaurant and catering markets through the Johnsons Hotel Linen, Johnsons Hotel, Restaurant & Catering Linen and Johnsons Restaurant & Catering Linen brands.
Revenue Growth: Revenue rose to £257 million in H1, driven by price increases, last year's acquisitions, and some new contracts. Organic growth was 1.4%.
Margin Expansion: Adjusted EBITDA margin improved to 29.3% from 28.3% last year, and adjusted operating margin rose to 11.1% from 10.3%.
Cost Pressures: Energy costs as a percentage of revenue declined but remain above pre-pandemic levels; labor costs rose due to minimum wage hikes.
Share Buyback: Management launched a further £25 million share buyback, bringing total buybacks to £65.3 million since 2022.
Guidance Maintained: Management reiterated confidence in meeting full-year margin expectations and achieving at least 14% adjusted operating margin by 2026.
Segment Performance: HORECA revenue up 7.2% with 1.4% organic growth; Workwear revenue up 1.3% with strong customer retention at 94%.
