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Highlights

  • JSG’s FY24 revenue reached GBP 513.4 million, a 10.3% increase from FY23, driven by 5.6% organic growth in the HORECA sector
  • Adjusted operating profit rose by 23.4% YoY to GBP 62.3 million in FY24, benefiting from lower energy costs despite a slight increase in labour costs
  • The company has returned over GBP 35.0 million to shareholders through two completed share buyback programs
  • JSG’s board plans an additional GBP 30.0 million share buyback program, starting with an initial GBP 15.0 million tranche

Johnson Service Group PLC (LSE:JSG) is a provider of textile rental and related services across the UK and Republic of Ireland, with its Workwear division leading in workwear and protective clothing.

In the financial year 2024 (FY24), the company experienced 10.3% YoY increase in its revenue, reaching GBP 513.4 million. This growth was primarily driven by a 5.6% YoY organic revenue increase in the HORECA sector, supported by higher prices and volumes. Additionally, the workwear segment remained stable, contributing to the overall revenue expansion.

Adjusted operating profit also saw a significant increase, rising by 23.4% YoY to GBP62.3 million. This improvement was largely attributed to a reduction in energy costs, which decreased to 8.8% of revenue from 10.0% in FY23. However, this was partially offset by a slight increase in labor costs, which rose to 44.6% of revenue from 44.0%, impacting the overall profitability.

Company Outlook

JSG completed two share buyback programs, returning over GBP 35.0 million to shareholders. Despite GBP 44.6 million in capital investments and a GBP 20.6 million acquisition, the company maintains a good financial headroom with a leverage below one.

The company's board intends to initiate an additional share buyback of up to GBP 30.0 million over the next 12 months, beginning with an initial GBP 15.0 million tranche. It remains on target to reach a 14.0% adjusted operating profit margin by 2026, with anticipated progress in 2025.

Top 10 Shareholders

The top 10 shareholders of Johnson Service Group collectively hold approximately 53.52% of the total shares. Primestone Capital LLP holds the largest stake at around 11.80%, followed by Octopus Investments Limited with approximately 8.26%, as shown in the chart below.

Stock Information

The stock has experienced a decline of approximately 0.71% over the past month and a 10.58% drop over the last six months. Its 52-week low stands at GBX 117.20, while the high is GBX 172.00. As of 24 March 2025, the stock is trading below the 52-week high-low average, with a closing price of GBX 135.40.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 24 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.