Johnson Service Group reports in-line FY25 results, targets 14% margin
#Johnson Service Group #FY25 Results #EBITA Margin #Workwear Division #HORECA Growth #Dividend Increase #14% Margin Target #Economic Uncertainty
📌 Key Takeaways
- Johnson Service Group met FY25 analyst expectations with £72.5m adjusted EBITA
- The company achieved strong margin expansion of 140 basis points to 13.5%
- Workwear division showed solid growth of 2.4% with stable retention at 94%
- The company is targeting a 14% operating margin for 2026 despite economic uncertainties
- The company increased dividend by 20% to 4.8p and plans to pursue investment opportunities
📖 Full Retelling
Johnson Service Group PLC (LSE:JSG) reported full-year 2025 results on Tuesday that aligned with analyst expectations, posting adjusted EBITA of £72.5m against forecasts of £72.1m, as the company continues its strategic growth trajectory despite economic uncertainties. The company generated revenues of £535.4m, slightly below the forecast of £535.6m, with organic growth reaching 1.4%. The Workwear division performed well, growing by 2.4% while maintaining stable customer retention at 94%, while the HORECA segment advanced by 1.0%. Adjusted earnings per share came in at 12.1p versus the forecast of 12.0p, and the company increased its dividend per share by 20% to 4.8p, matching analyst expectations. The adjusted EBITA margin expanded significantly by 140 basis points to 13.5% from 12.1% in 2024, driven by a 160 basis point reduction in energy costs to 7.4% of revenue, though labour costs increased by 140 basis points to 46.0% of revenue. Looking ahead, Johnson Service Group has hedged 90% of its electricity and 95% of its gas requirements for the first half of 2026, providing cost certainty amid volatile energy markets. The company recorded £6m in one-off costs, primarily related to a £1.7m market move and £3.4m in reorganisation expenses, while maintaining strong cash flow with £69m in free cash flow and bank net debt of £114m, resulting in gearing of 0.95 times. Despite current economic uncertainty and increased costs affecting some customers, the Board confirmed it remains on track to achieve its targeted adjusted operating margin of at least 14.0% in 2026 and will continue pursuing organic and inorganic investment opportunities while actively reviewing share buyback options throughout the year.
🏷️ Themes
Financial Performance, Strategic Growth, Economic Resilience
📚 Related People & Topics
Johnson Service Group
Textile rental business based in the UK
Johnson Service Group is a specialist textile rental business based in Preston Brook, Cheshire, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
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