Johnson Service Group PLC (GB:JSG)
LSE:JSG
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Johnson Service
(LSE:JSG)
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Rating:61Neutral
Price Target:
135.00 p
▲(0.15% Upside)
Action:ReiteratedDate:04/02/26
The score is primarily supported by improved financial performance (strong multi-year revenue/profit recovery) and reasonable valuation with a solid dividend yield. It is held back by weakening technical signals (price below key moving averages and negative momentum) and financial risk factors including higher leverage and volatile free cash flow.
Positive Factors
Revenue Growth Trajectory
Sustained multi-year revenue growth more than doubles scale since 2020, indicating stronger market penetration and diversified client activity. That scale supports durable relationships, operational leverage, and capacity to invest in staffing platforms and sales, aiding revenue resilience over months.
Negative Factors
Increased Leverage
Leverage rising materially reduces financial flexibility and raises interest and refinancing risk if demand softens. Higher debt relative to equity constrains the firm's ability to absorb shocks, limits optionality for M&A or buybacks, and increases scrutiny on cash generation sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trajectory
Sustained multi-year revenue growth more than doubles scale since 2020, indicating stronger market penetration and diversified client activity. That scale supports durable relationships, operational leverage, and capacity to invest in staffing platforms and sales, aiding revenue resilience over months.
Read all positive factors
Johnson Service (JSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£489.54M
Dividend Yield3.18%
Average Volume (3M)1.91M
Price to Earnings (P/E)14.6
Beta (1Y)1.13
Revenue Growth6.55%
EPS Growth18.44%
CountryUK
Employees6,601
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding379,494,140
10 Day Avg. Volume972,297
30 Day Avg. Volume1,910,294
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)1.97
Price to Sales (P/S)1.01
P/FCF Ratio14.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£177.50Price Target Upside31.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
Revenue Forecast (FY)£553.22M
Johnson Service Business Overview & Revenue Model
Company Description
Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom. The company operates through two segments, Workwear; and Hotel, Restaurants and Catering. The Workwear segment supplies ...
How the Company Makes Money
JSG makes money primarily by providing staffing and recruitment services to client companies. Its key revenue streams typically include: (1) Contract/temporary staffing: JSG recruits workers and assigns them to clients for a defined period; the cl...
Johnson Service Earnings Call Summary
Earnings Call Date:Sep 02, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 08, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and improved margins, alongside successful sustainability initiatives and share buybacks. However, challenges remain with increased labor costs and implementing price increases. The sentiment is overall positive due to the achievements outweighing the challenges.Positive Updates
Revenue Increase
Revenue increased to GBP 257 million, reflecting both price increases and acquisitions made last year. Organic growth overall was 1.4%.
Negative Updates
Increased Labor Costs
Labor costs have increased as a percentage of revenue to 46.4% due to a 6.7% increase in minimum wage.
Read all updates
Q2-2025 Updates
Positive
Negative
Revenue Increase
Revenue increased to GBP 257 million, reflecting both price increases and acquisitions made last year. Organic growth overall was 1.4%.
Read all positive updates
Company Guidance
In the recent call, the company provided detailed guidance on various financial metrics and operational strategies. Revenue increased to GBP 257 million, driven by price increases and acquisitions, with organic growth at 1.4%. Adjusted EBITDA rose to GBP 75.4 million, improving the margin to 29.3% from 28.3% last year. The adjusted operating profit was GBP 28.7 million, with an 11.1% margin, up from 10.3%. The company declared an interim dividend of 1.6p, and EPS increased by 17.9% to 4.6p. Energy costs were 7.8% of revenue, down from 9.4% last year, and the company has hedged 90% of gas and 75% of electricity prices for H2. The Workwear segment saw a 1.3% revenue increase to GBP 72.1 million, with an EBITDA margin of 35.9%. The company also announced a GBP 25 million share buyback and maintained a strong balance sheet with net debt at GBP 145 million including IFRS 16. The management expressed confidence in achieving an adjusted operating profit margin of at least 14% by 2026, supported by ongoing investments in productivity and sustainability initiatives.Johnson Service Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 535.40M | 513.40M | 465.30M | 385.70M | 271.40M |
| Gross Profit | 203.90M | 513.40M | 167.10M | 135.00M | 81.10M |
| EBITDA | 166.80M | 152.20M | 129.40M | 104.90M | 74.50M |
| Net Income | 37.10M | 35.60M | 27.30M | 29.00M | 6.60M |
Balance Sheet | |||||
| Total Assets | 579.50M | 562.30M | 509.00M | 433.50M | 412.90M |
| Cash, Cash Equivalents and Short-Term Investments | 11.00M | 11.50M | 9.60M | 6.10M | 5.20M |
| Total Debt | 170.20M | 127.10M | 114.50M | 54.10M | 65.30M |
| Total Liabilities | 304.40M | 255.40M | 229.90M | 148.90M | 140.50M |
| Stockholders Equity | 275.10M | 306.90M | 279.10M | 284.60M | 272.40M |
Cash Flow | |||||
| Free Cash Flow | 38.30M | 91.20M | 28.40M | 18.30M | -21.60M |
| Operating Cash Flow | 139.90M | 141.80M | 121.40M | 94.50M | 44.60M |
| Investing Cash Flow | -103.00M | -130.70M | -119.20M | -71.60M | -66.90M |
| Financing Cash Flow | -37.50M | -9.50M | -2.10M | -17.70M | 11.30M |
Johnson Service Technical Analysis
Negative
134.80
Price Trends
138.31
Negative
137.77
Negative
140.23
Negative
Market Momentum
-2.93
Negative
41.28
Neutral
38.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JSG, the sentiment is Negative. The current price of 134.8 is above the 20-day moving average (MA) of 130.40, below the 50-day MA of 138.31, and below the 200-day MA of 140.23, indicating a bearish trend. The MACD of -2.93 indicates Negative momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JSG.
Johnson Service Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.86B | 19.41 | 16.69% | 1.27% | 0.84% | -62.73% | |
76 Outperform | £2.18B | 13.52 | 20.41% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £11.96B | 31.67 | 6.51% | 1.68% | -1.58% | -34.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £489.54M | 14.60 | 13.04% | 3.18% | 6.55% | 18.44% | |
42 Neutral | £1.73B | 126.90 | ― | 0.36% | -2.24% | ― | |
41 Neutral | £329.87M | -2.81 | -142.88% | ― | -4.87% | ― |
* Industrials Sector Average
GB:JSG
Johnson Service
129.00
1.37
1.07%
GB:CPI
Capita plc
275.50
76.00
38.10%
GB:MTO
Mitie Group plc
173.20
58.81
51.41%
GB:RTO
Rentokil Initial
475.60
129.20
37.30%
GB:SRP
Serco Group plc
290.20
130.83
82.09%
GB:IWG
IWG plc
178.00
-4.61
-2.53%
Johnson Service Corporate Events
Regulatory Filings and Compliance
Johnson Service Group Confirms Updated Voting Rights and Share Capital
Neutral
Apr 1, 2026
Johnson Service Group PLC has confirmed that as of 31 March 2026 its issued share capital comprises 379,494,126 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury. The company stated that th...
Regulatory Filings and Compliance
Johnson Service CEO Increases Stake After Exercising LTIP Options
Neutral
Mar 23, 2026
Johnson Service Group PLC has disclosed a series of share transactions involving Chief Executive Peter Egan under its 2018 Long Term Incentive Plan, including the exercise of 487,934 nil-cost options granted in 2023. To meet tax and social securit...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Johnson Service Group Publishes 2025 Annual Report and Sets Date for AGM
Neutral
Mar 19, 2026
Johnson Service Group PLC has published its Annual Report and Accounts for the year ended 31 December 2025, together with the formal Notice of its upcoming Annual General Meeting, and has distributed or otherwise made these documents available to ...
Business Operations and StrategyExecutive/Board Changes
Johnson Service Group reshapes board with new audit chair and senior independent director
Positive
Mar 3, 2026
Johnson Service Group PLC has strengthened its board with the appointment of Lysanne Gray as an Independent Non-Executive Director from 1 June 2026, bringing extensive experience in finance, audit, risk and corporate governance from senior roles a...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Johnson Service Group lifts margins and payouts as profits jump in 2025
Positive
Mar 3, 2026
Johnson Service Group reported a 4.3% rise in 2025 revenue to £535.4m, driven by modest organic growth in both HORECA and workwear and supported by price increases and efficiency gains. Adjusted operating profit climbed 16.4% to £72.5m, ...
Regulatory Filings and Compliance
Johnson Service Group Confirms Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
Johnson Service Group has confirmed that, as of 27 February 2026, its issued share capital comprises 377,792,229 ordinary shares of 10 pence each, with every share carrying one vote and no shares held in treasury. This disclosure sets the official...
Financial Disclosures
Johnson Service Group Sets Date for 2025 Preliminary Results Announcement
Neutral
Feb 6, 2026
Johnson Service Group has announced it will publish its preliminary results for the year ended 31 December 2025 on 3 March 2026, signaling upcoming disclosure on the company’s recent financial and operational performance. The group will host...
Regulatory Filings and Compliance
Johnson Service Confirms 377.8 Million Voting Rights in Share Capital Update
Neutral
Feb 2, 2026
Johnson Service Group PLC has confirmed that, as of the close of business on 30 January 2026, its issued share capital comprises 377,792,229 ordinary shares of 10 pence each, all carrying one voting right and with no shares held in treasury. This ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Johnson Service Group Delivers Profit Growth as Revenues Rise and Buybacks Lift Debt
Positive
Jan 16, 2026
Johnson Service Group reported a 4.3% rise in full-year 2025 revenue to £535.6 million, driven by growth in both its HORECA division, which increased to £390.0 million, and its Workwear arm, which rose to £145.6 million, with organi...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Newly Repurchased Shares Under Ongoing Buyback
Positive
Jan 8, 2026
Johnson Service Group PLC has repurchased 59,295 of its 10 pence ordinary shares on 7 January 2026 at a price of 138.05 pence per share as part of its ongoing share buyback programme launched in September 2025. The company intends to cancel these ...
Business Operations and StrategyStock Buyback
Johnson Service Group Completes £25m Share Buyback Programme
Positive
Jan 8, 2026
Johnson Service Group PLC has completed a share buyback programme that began on 2 September 2025, repurchasing 17,724,645 ordinary shares on the London Stock Exchange for cancellation at an average price of 141.05p per share, at a total cost of &#...
Business Operations and StrategyStock Buyback
Johnson Service Continues Buyback With £0.3m Share Repurchase
Positive
Jan 7, 2026
Johnson Service Group PLC has executed another tranche of its previously announced share buyback programme, repurchasing 224,432 ordinary shares on 6 January 2026 on the London Stock Exchange at a volume‑weighted average price of 135.4049 pe...
Business Operations and StrategyStock Buyback
Johnson Service Group Continues Share Buyback, Cancels 221,710 Shares
Positive
Jan 6, 2026
Johnson Service Group PLC has continued its share buyback programme, purchasing 221,710 ordinary shares of 10 pence each on 5 January 2026 via Investec Bank at prices between 130.20p and 132.80p, with a volume-weighted average price of 132.0339p. ...
Regulatory Filings and Compliance
Johnson Service Group Confirms Share Capital and Voting Rights Total
Neutral
Jan 2, 2026
Johnson Service Group PLC has confirmed that its issued share capital as of 31 December 2025 comprises 378,297,666 ordinary shares of 10 pence each, with no shares held in treasury, giving each share one voting right. The disclosure, made in line ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.