Johnson Service Group Reports Resilient First-Half Performance with Improved Profit Margins
Johnson Service Group (JSG.L) reported resilient first-half results in fiscal year 2026, despite a broadly flat revenue increase of just 0.2% to £258 million. Adjusted operating profit rose by 3.8% to £29.8 million and the margin improved to 11.6%, driven by pricing strategies, operational efficiencies, and cost control measures. The company's mixed divisional performance saw Workwear revenue grow organically by 2.6%, while HORECA (hotel, restaurant, catering) revenue declined by 2% due to reduced customer volumes in the hospitality sector. Despite this weakness, both divisions improved their operating margins, and JSG secured over £5 million of new annualized contracts in HORECA. Looking ahead, management remains confident about achieving its adjusted operating margin target of at least 14% by 2026. The interim dividend was increased by 12.5%, and the company has completed more than half of a planned £55 million share buyback as of August.
Topics: buyback update dividend increase margin improvement operating profit revenue