Results in brief
Johnson Service Group PLC reported full-year 2025 adjusted EBITA of £72.5m, in line with analyst expectations of £72.1m. Group revenue for the period was £535.4m, narrowly below the forecast of £535.6m that had been disclosed in a January trading update.
Growth and divisional performance
Organic growth across the business amounted to 1.4% for the year. The Workwear division expanded by 2.4%, while HORECA grew by 1.0%. Workwear customer retention held steady at 94%.
Profitability and shareholder returns
Adjusted earnings per share were 12.1p, compared with a forecast of 12.0p. The company raised its dividend per share by 20% to 4.8p, consistent with analyst expectations.
Margin and cost structure
The adjusted EBITA margin widened by 140 basis points to 13.5% from 12.1% in 2024. Labour costs increased by 140 basis points to 46.0% of revenue, up from 44.6% in the prior year. Energy costs fell by 160 basis points, to 7.4% of revenue from 8.8% in 2024.
Hedging
To manage energy exposure, the company has hedged 90% of its electricity and 95% of its gas needs for the first half of 2026. For the second half of 2026, 75% of electricity and 85% of gas requirements are hedged.
One-off items and cash position
The group recorded £6m of one-off costs during the year, principally comprising a £1.7m market move and £3.4m of reorganisation expenses. Free cash flow for the period was £69m. At year-end bank net debt stood at £114m, producing gearing of 0.95 times.
Board strategy and outlook
The Board said it will continue to pursue both organic and inorganic investment opportunities and will actively review options for share buybacks throughout 2026. No new buyback programme was announced. For 2026, the company expects to deliver growth across the group despite regional and sector differences in HORECA volumes. The Board confirmed it remains on track to achieve a targeted adjusted operating margin of at least 14.0% in 2026, noting current economic uncertainty and that higher labour and premises costs are affecting some customers.
Report prepared using the facts disclosed by the company. The article presents the companys reported figures and stated outlook without additional interpretation.