Johnson Service Group PLC (JSG) reported preliminary results for the year ended December 31, 2025, highlighting resilient sales performance and strong profit growth. Here’s a summary of the key points
### **Financial Highlights (2025 vs. 2024)**
**Revenue**Increased by 4.3% to £535.4 million (2024: £513.4 million).
**Adjusted Operating Profit**Rose by 16.4% to £72.5 million (2024: £62.3 million), with a margin improvement to 13.5% (2024: 12.1%).
**Adjusted EBITDA Margin**Improved to 31.2% (2024: 29.7%).
**Adjusted Profit Before Taxation**Increased by 17.7% to £64.5 million (2024: £54.8 million).
**Adjusted Diluted Earnings Per Share**Grew by 19.8% to 12.1p (2024: 10.1p).
**Dividend**Increased by 20.0% to 4.8p per share (2024: 4.0p).
### **Operational Highlights**
**Organic Revenue Growth**1.4% overall, with HORECA (Hotel, Restaurant, and Catering) up 1.0% and Workwear up 2.4%.
**HORECA Division**Revenue increased to £389.8 million (2024: £371.2 million), with adjusted operating profit rising to £59.8 million (2024: £49.4 million) and a margin of 15.3% (2024: 13.3%).
**Workwear Division**Revenue grew to £145.6 million (2024: £142.2 million), with adjusted operating profit increasing to £21.0 million (2024: £20.3 million) and a margin of 14.4% (2024: 14.3%).
**Share Buyback**Completed £55.0 million of share buybacks in January 2026, bringing the total since 2022 to £90.3 million.
**Net Debt**Increased to £159.2 million (2024: £115.6 million) due to capital investment, share buybacks, and dividend payments.
### **Strategic and Operational Initiatives**
**Energy Cost Management**Energy costs reduced as a percentage of revenue, with proactive forward fixing of energy prices.
**Sustainability**Published the fourth Sustainability Report in June 2025, with targets set for gas and plastic reduction in 2026.
**Operational Efficiencies**Price increases and productivity improvements helped offset cost inflation.
### **Outlook**
**Growth Expectations**The Board anticipates another year of growth and margin improvement in FY26, despite economic uncertainty.
**Margin Target**On track to achieve a targeted adjusted operating margin of at least 14.0% in 2026.
**Capital Allocation**Focus on expanding the Group through targeted investment and identifying earnings-enhancing opportunities.
**Share Buybacks**The Board will continue to review options for further share buybacks in 2026.
### **CEO Commentary**
Peter Egan, CEO, emphasized the Group’s strong earnings growth and improved margins, driven by operational efficiencies, cost control, and service excellence. He highlighted the successful admission to the Main Market in August 2025 as a significant milestone and reaffirmed the Group’s commitment to long-term value creation for stakeholders.
### **Financial Review**
**Cash Flow**Free cash flow was £69.1 million (2024: £74.6 million), impacted by working capital outflows and increased investment in textile rental items.
**Capital Investment**Continued investment in expanding capacity, efficiency, and sustainability across the estate.
**Pension Scheme**The defined benefit pension scheme showed a surplus of £4.9 million (2024: £3.8 million).
### **Conclusion**
JSG demonstrated resilience and growth in FY25, with strong financial performance and strategic initiatives positioning the Group for continued success in FY26. Despite economic challenges, the Board remains confident in delivering growth and achieving margin targets.