Johnson Service Group (LSE:JSG) reported first-half 2026 revenue of £258 million, an increase of 0.2% from the same period a year earlier, with differing trends across its Workwear and HORECA businesses.
Adjusted profit before tax for the six months was £25.30 million. The company also reported an improvement in its adjusted operating margin, supported by operational efficiencies and cost management measures.
Workwear Revenue Grows as HORECA Declines
Johnson Service’s Workwear division recorded revenue growth during the first half, supported by stable volumes and increases in customer pricing.
The HORECA division, which serves hotels, restaurants and catering customers, reported lower revenue. The company attributed the decline to reduced volumes and higher customer churn.
Management expects softer trading conditions in HORECA to continue during the remainder of 2026.
For Workwear, Johnson Service expects stable volumes and customer price increases to continue supporting the business through the second half.
Energy Costs Decline as Percentage of Revenue
Energy costs represented a smaller proportion of group revenue during the first half.
Johnson Service said its energy hedging strategy and fixed-price contracts contributed to the reduction.
The group continues to focus on operational efficiency and cost management across its businesses as it manages differing trading conditions between Workwear and HORECA.
Johnson Service Targets 2026 Operating Margin of at Least 14%
For the full 2026 financial year, Johnson Service expects an adjusted operating margin of at least 14%.
The company is also progressing with its £55 million share buyback programme. As of August 2026, approximately 51% of the programme had been completed.
The margin outlook remains management guidance and is subject to trading during the remainder of the financial year.
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