Johnson Service Group (LSE:JSG) reported a 4.3% increase in full-year 2025 revenue to £535.6 million, supported by growth across both operating divisions. Revenue from the HORECA business rose to £390.0 million, while the Workwear division increased to £145.6 million, resulting in group-wide organic growth of 1.4%.
Disciplined cost management and operational efficiencies drove a strong rise in adjusted operating profit and further margin improvement, bringing the group closer to its 2026 target margin of at least 14%. HORECA activity remained resilient, delivering organic growth of 1.0%, while stable demand in Workwear supported organic growth of 2.4%. Net debt increased to around £112.0 million, primarily reflecting £54.7 million of cash deployed on share buybacks. The completion of the latest £25.0 million programme lifted total capital returned through repurchases since 2022 to £90.3 million.
The board said it remains confident in delivering additional progress and advancing its margin ambitions in 2026, despite ongoing macroeconomic uncertainty. Full-year results are scheduled for release in early March.
From an investment perspective, Johnson Service Group’s outlook is underpinned by solid financial execution and constructive sentiment from recent earnings commentary. The ongoing share buyback programme continues to enhance shareholder returns, while neutral technical indicators and a fair valuation support a broadly positive assessment.
More about Johnson Service Group
Johnson Service Group is a leading provider of textile services across the UK and the Republic of Ireland. The Group supplies laundry and related services to the HORECA (hotel, restaurant and catering) sector, alongside workwear rental and laundry solutions for corporate and industrial customers. Its business model is built around long-term contracts, high customer retention and operational efficiency within specialist textile care markets.
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