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Highlights

  • Johnson Service Group receives BUY ratings from Berenberg and Investec, with a target price implying up to 38.12% upside.

  • JSG's H1 FY25 revenue expected to rise by 5.5% to £257.6 million, supported by growth across HORECA and Workwear segments.

  • The company will shift from AIM to Main Market on 1 August 2025, reinforcing long-term investor confidence.

Johnson Service Group PLC (LSE:JSG), a key textile and workwear services provider across the UK and Ireland, has secured a BUY recommendation from analysts at Berenberg and Investec, with upside potential of up to 38.12% from the current trading price of GBp 144.8.

Berenberg analyst James Fletcher has assigned a BUY rating with a target of AUD 4.00, reflecting a 34.67% premium to the current price, while Investec's Tom Callan has set a more bullish target of AUD 4.10, suggesting 38.12% upside. The current consensus recommendation stands at 1.8 (BUY), with the mean target price of AUD 3.88, converted from GBp using an exchange rate of 0.021.

These ratings and price targets follow JSG’s consistent operational performance and strategic developments.

First Half FY25 Trading Update: Resilient Growth in Core Segments

In its trading update for the six months ended 30 June 2025, JSG reported expected group revenue of £257.6 million, a 5.5% increase from £244.1 million in H1 FY24. This was driven by significant contributions from both key divisions:

  • HORECA (Hotel, Restaurant & Catering) revenue grew to £185.4 million, up from £172.9 million.

  • Workwear revenue increased slightly to £72.2 million, from £71.2 million.

While organic revenue growth came in at 1.4%, the company’s margin performance remained robust, and JSG reaffirmed its commitment to achieving an EBITDA margin of at least 14.0% by FY26.

Management noted a slight softening in hospitality volumes earlier in the summer, aligned with broader market conditions. However, volume improvements in recent weeks and stable Workwear demand—with June installations—helped offset these headwinds.

Buyback Program and Balance Sheet 

JSG’s balance sheet remains healthy, with bank debt of approximately £99.0 million as of 30 June 2025, including £16.8 million already deployed under the £30 million share buyback program. By early July, £23.0 million had been returned to shareholders. Management expects bank debt to decline in H2 FY25 in the absence of further major capital investments.

Upcoming Move to the Main Market

In a major strategic shift, JSG has confirmed plans to transfer its listing from AIM to the Main Market of the London Stock Exchange. The transition is expected to occur on 1 August 2025, with the final day of AIM trading scheduled for 31 July 2025. This move aims to enhance market visibility, broaden the shareholder base, and improve liquidity.