Highlights

  • Group revenue increased 4.3% to GBP 535.6 million, with HORECA at GBP 390.0 million and Workwear at GBP 145.6 million.
  • Net debt rose to GBP 112.0 million, reflecting share buybacks totaling GBP 54.7 million for 2025.
  • Organic revenue growth was 1.4% overall, with Workwear at 2.4% and HORECA at 1.0%.

Johnson Service Group plc (LSE:JSG), a leading textile services provider operating across the UK and Republic of Ireland, has released its trading update for the year ending 31 December 2025. The company reports growth in revenue across its HORECA and Workwear divisions, alongside ongoing efforts to improve operational efficiency and manage costs.

Revenue Growth Across Key Divisions

Group revenue for 2025 is expected to reach GBP 535.6 million, marking an increase of 4.3% compared with GBP 513.4 million in 2024. The HORECA segment saw revenue rise to GBP 390.0 million from GBP 371.2 million the previous year, while Workwear revenue increased to GBP 145.6 million from GBP 142.2 million. On an organic basis, revenue growth for the full year is estimated at around 1.4%, consistent with trends observed in the first half of 2025.

HORECA trading remained stable in the latter months of the year, with organic revenue growth projected at 1.0%. Workwear volumes were steady, supported by new installations and a customer retention rate of 94%, contributing to an expected organic revenue growth of 2.4%.

Profit and Margin Developments

JSG’s focus on cost management and operational efficiency has contributed to year-on-year growth in adjusted operating profit, aligning with market expectations. Margins are reported to have improved and are on track toward the company’s stated target of at least 14.0% by 2026.

Debt and Shareholder Returns

Net debt (excluding IFRS 16 lease liabilities) stood at approximately GBP 112.0 million at the end of December 2025, up from GBP 68.6 million in 2024. This increase reflects a GBP 54.7 million cash outflow related to share buybacks. The company’s GBP 25.0 million buyback program, initiated in September 2025, has now concluded, bringing total returns to shareholders through buybacks since 2022 to GBP 90.3 million.

Outlook for 2026

Despite ongoing economic uncertainty, the Board has indicated confidence in continuing progress through 2026. The company expects to maintain growth momentum and achieve its target operating margin of at least 14.0%. Full-year results for 2025 are scheduled for release in early March 2026.