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Johnson Service
(LSE:JSG)
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Rating:68Neutral
Price Target:
159.00 p
â–²(6.07% Upside)
Action:Reiterated
Date:06/28/26
The score is driven primarily by improving profitability and solid operating cash flow, offset by rising leverage and volatile free cash flow. Technicals are supportive with a clear uptrend, but overbought signals increase near-term risk. Valuation looks fair with a moderate dividend yield, providing some downside support but not a major catalyst.
Positive Factors
Multi-year revenue and profit recovery
The sustained recovery shows stronger scale and profitability than in 2020, supporting the company’s ability to expand its customer base and convert higher revenue into durable earnings.
Negative Factors
Meaningfully higher leverage
The rise in leverage reduces financial flexibility and increases sensitivity to weaker operating conditions, especially if customer demand, pricing, or plant utilization deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue and profit recovery
The sustained recovery shows stronger scale and profitability than in 2020, supporting the company’s ability to expand its customer base and convert higher revenue into durable earnings.
Read all positive factors
Johnson Service (JSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£523.88M
Dividend Yield3.3%
Average Volume (3M)1.91M
Price to Earnings (P/E)15.6
Beta (1Y)1.10
Revenue Growth4.29%
EPS Growth7.68%
CountryUK
Employees6,696
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding363,555,820
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
£177.67Price Target Upside18.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)£540.39M
Johnson Service Business Overview & Revenue Model
Company Description
Johnson Service Group PLC is a UK-based company that, through its various subsidiaries, specializes in providing textile rental and associated services. The company's operations are divided into two main segments: Workwear, and Hotel, Restaurants ...
How the Company Makes Money
JSG primarily makes money by providing textile rental contracts and associated laundering and garment-care services to business customers. Under its rental model, customers pay recurring fees for the ongoing provision, collection, laundering, qual...
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 | 167.80M | 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
149.90
Price Trends
153.72
Negative
144.94
Positive
139.91
Positive
Market Momentum
-1.84
Positive
38.74
Neutral
15.95
Positive
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 149.9 is above the 20-day moving average (MA) of 149.21, below the 50-day MA of 153.72, and above the 200-day MA of 139.91, indicating a neutral trend. The MACD of -1.84 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 15.95 is Positive, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £8.73B | 24.61 | 5.82% | 2.15% | -0.18% | 39.04% | |
72 Outperform | £2.60B | 32.20 | 15.86% | 2.15% | 10.55% | -19.05% | |
69 Neutral | £2.57B | 17.19 | 17.55% | 1.87% | 1.20% | 221.80% | |
68 Neutral | £523.88M | 15.58 | 13.04% | 3.20% | 4.29% | 7.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
44 Neutral | £1.68B | 262.89 | -2.52% | 0.51% | 0.18% | -55.56% | |
42 Neutral | £349.15M | -1.68 | -677.10% | ― | -16.13% | -1315.87% |
* Industrials Sector Average
GB:JSG
Johnson Service
145.50
8.89
6.51%
GB:CPI
Capita plc
280.00
47.50
20.43%
GB:MTO
Mitie Group plc
208.20
66.38
46.81%
GB:RTO
Rentokil Initial
345.70
-12.50
-3.49%
GB:SRP
Serco Group plc
262.60
36.04
15.91%
GB:IWG
IWG plc
172.20
-21.34
-11.03%
Johnson Service Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Continues Share Buyback, Cancels Nearly One Million Shares
Positive
Aug 18, 2026
Johnson Service Group PLC has continued to actively manage its capital structure through the execution of its previously announced share buyback programme, using Investec Bank plc as broker on the London Stock Exchange. The company’s focus o...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After Ongoing Buyback Programme
Positive
Aug 11, 2026
Johnson Service Group PLC has repurchased a series of its ordinary shares as part of a share buyback programme conducted through Investec Bank. The purchases, made between 3 August and 7 August 2026 on the London Stock Exchange, were executed at w...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Continues Share Buyback and Plans Cancellation of Repurchased Stock
Positive
Aug 4, 2026
Johnson Service Group has continued its share buyback programme, repurchasing a series of ordinary shares between 27 July and 31 July 2026 through Investec Bank on the London Stock Exchange. Across these transactions, the company acquired several ...
Regulatory Filings and Compliance
Johnson Service Group Clarifies Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
Johnson Service Group has confirmed that, as of 31 July 2026, its issued share capital comprises 364,860,476 ordinary shares of 10 pence each, with no shares held in treasury and each share carrying one vote. This disclosure clarifies the company&...
Regulatory Filings and Compliance
Johnson Service Group Sets Total Voting Rights at 364.9 Million Shares
Neutral
Aug 3, 2026
Johnson Service Group PLC has confirmed that, as of 31 July 2026, its issued share capital comprises 364,860,476 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury. This disclosure sets the ...
Business Operations and StrategyStock Buyback
Johnson Service Group Advances Share Buyback and Cancels Repurchased Stock
Positive
Jul 28, 2026
Johnson Service Group has continued executing its previously announced share buyback programme, repurchasing ordinary shares with a nominal value of 10 pence each on the London Stock Exchange between 20 and 24 July 2026. The purchases, conducted v...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After July Buyback
Positive
Jul 21, 2026
Johnson Service Group PLC is a U.K.-listed company operating in the textile services sector, with its shares traded on the London Stock Exchange. The group’s ordinary shares, each with a nominal value of 10 pence, are a key instrument throug...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Over 2 Million Shares in Latest Buyback Tranche
Positive
Jul 14, 2026
Johnson Service Group has continued executing its share buyback programme, repurchasing more than 2 million ordinary shares between 6 and 10 July 2026 through Investec Bank at weighted average prices ranging from about 147p to 170p. The company pl...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Cancels Over 2 Million Shares in Buyback Programme
Positive
Jul 14, 2026
Johnson Service Group PLC, a U.K.-listed textile rental and business services provider, focuses on supplying laundered linen, workwear and related services to sectors including hospitality and healthcare. Its recurring, contract-driven revenue bas...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Johnson Service stays on margin track as HORECA softens and buyback advances
Positive
Jul 10, 2026
Johnson Service Group reported first-half 2026 revenue broadly flat at £258 million, with modest growth in Workwear offset by softer HORECA sales amid ongoing hospitality sector challenges. Organic revenue declined slightly overall, but prici...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Cancels Over 1.7 Million Shares in Ongoing Buyback
Positive
Jul 7, 2026
Johnson Service Group PLC has been executing a share buyback programme on the London Stock Exchange, repurchasing its ordinary shares of 10 pence each through Investec Bank plc. The company targets capital management and shareholder value by reduc...
Regulatory Filings and Compliance
Johnson Service Confirms Share Capital and Voting Rights Total
Neutral
Jul 1, 2026
Johnson Service Group has confirmed that, as of 30 June 2026, its issued share capital comprises 371,923,817 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury. This establishes the total nu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Advances Share Buyback With Planned Cancellation of Shares
Positive
Jun 30, 2026
Johnson Service Group PLC has continued to execute its previously announced share buyback programme, purchasing just under 1.5 million ordinary shares on the London Stock Exchange between 22 and 26 June 2026 at weighted average prices ranging from...
Executive/Board ChangesRegulatory Filings and Compliance
Johnson Service Chair Jock Lennox to Lead Halfords Board While Retaining Role
Neutral
Jun 25, 2026
Johnson Service Group has announced that its Non-Executive Chair, Jock Lennox, has been appointed Non-Executive Director and Chair Designate of Halfords Group, effective 1 September 2026. He will retain his position at Johnson Service Group while ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Cancels Shares After June Buyback
Positive
Jun 23, 2026
Johnson Service Group has repurchased a series of its own ordinary shares as part of a previously announced share buyback programme, executing purchases on the London Stock Exchange between 15 and 19 June 2026. The shares, bought at weighted avera...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Latest Tranche of Buyback Shares
Positive
Jun 16, 2026
Johnson Service Group has continued executing its previously announced share buyback, repurchasing more than 1.8 million ordinary shares between 8 and 12 June 2026 on the London Stock Exchange at daily weighted average prices ranging from about 15...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels 1.37 Million Shares After Buyback
Positive
Jun 9, 2026
Johnson Service Group has repurchased just over 1.37 million of its own ordinary shares between 1 and 5 June 2026 under a previously announced buyback programme, executing the trades on the London Stock Exchange via Investec Bank. The company plan...
Business Operations and StrategyStock Buyback
Johnson Service Continues Share Buyback, Cancels Newly Repurchased Stock
Positive
Jun 2, 2026
Johnson Service Group has continued executing its previously announced share buyback programme, purchasing 179,165 ordinary shares on 26 May 2026 on the London Stock Exchange at a weighted average price of about 141.9 pence. The company plans to c...
Regulatory Filings and Compliance
Johnson Service Group Confirms Voting Rights and Share Capital Structure
Neutral
Jun 1, 2026
Johnson Service Group PLC has confirmed that, as of 29 May 2026, its issued share capital stands at 377,995,145 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury. This disclosure sets the o...
Executive/Board Changes
Johnson Service Group Announces Board Changes and Audit Chair Succession
Positive
Jun 1, 2026
Johnson Service Group has strengthened its board with the appointment of Lysanne Gray as an independent non-executive director, adding her immediately to the audit, nomination, and remuneration committees, and positioning her to succeed Chris Girl...
Business Operations and StrategyStock Buyback
Johnson Service Advances Share Buyback With Cancellation of Over 1.2 Million Shares
Positive
May 26, 2026
Johnson Service Group has continued executing its previously announced share buyback programme, purchasing more than 1.2 million ordinary shares between 15 and 22 May 2026 on the London Stock Exchange at weighted average prices ranging from roughl...
Business Operations and StrategyExecutive/Board Changes
Johnson Service Grants Performance-Based Share Options to Top Executives
Positive
May 19, 2026
Johnson Service Group PLC has granted nil-cost options over ordinary shares to certain employees, including CEO Peter Egan and CFO Ryan Govender, under its 2018 Long-Term Incentive Plan, following strong shareholder support for its remuneration po...
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.