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Johnson Service
(LSE:JSG)
Select Model
Select Model
Rating:68Neutral
Price Target:
179.00 p
▲(32.79% 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
Recurring rental revenue model
The rental-and-service business creates contractually recurring revenue and high customer stickiness. Route density, regular pickup/delivery and plant utilization translate into predictable volume and cost absorption, supporting durable cashflows and long-term margin stability.
Negative Factors
Rising leverage reduces financial flexibility
Material increase in leverage since 2022 tightens headroom for shocks, raises interest and covenant risk, and limits ability to pursue strategic investments. In a downturn, higher debt amplifies stress on cash flows and could force cost cutting or asset sales, impacting long-term growth options.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring rental revenue model
The rental-and-service business creates contractually recurring revenue and high customer stickiness. Route density, regular pickup/delivery and plant utilization translate into predictable volume and cost absorption, supporting durable cashflows and long-term margin stability.
Read all positive factors
Johnson Service (JSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£612.93M
Dividend Yield3.18%
Average Volume (3M)1.91M
Price to Earnings (P/E)17.8
Beta (1Y)1.02
Revenue Growth4.29%
EPS Growth7.68%
CountryUK
Employees6,601
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding371,923,830
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
£165.00Price Target Upside22.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
Revenue Forecast (FY)£546.70M
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
Positive
134.80
Price Trends
144.79
Positive
139.14
Positive
137.70
Positive
Market Momentum
5.25
Negative
76.47
Negative
80.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JSG, the sentiment is Positive. The current price of 134.8 is below the 20-day moving average (MA) of 155.97, below the 50-day MA of 144.79, and below the 200-day MA of 137.70, indicating a bullish trend. The MACD of 5.25 indicates Negative momentum. The RSI at 76.47 is Negative, neither overbought nor oversold. The STOCH value of 80.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £2.16B | 15.20 | 16.69% | 1.27% | 1.69% | 276.44% | |
68 Neutral | £612.93M | 17.82 | 13.04% | 3.18% | 4.29% | 7.68% | |
65 Neutral | £10.72B | 36.81 | 6.51% | 1.68% | -3.59% | 15.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.87B | 23.13 | 15.86% | 2.58% | 10.55% | -19.05% | |
45 Neutral | £328.79M | -2.01 | -142.88% | ― | -7.30% | -311.68% | |
42 Neutral | £1.77B | 136.97 | -5.79% | 0.36% | -2.90% | -2.16% |
* Industrials Sector Average
GB:JSG
Johnson Service
164.80
13.12
8.65%
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Johnson Service Corporate Events
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...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After Buyback Programme
Positive
May 18, 2026
Johnson Service Group PLC has repurchased a series of its own ordinary shares between 8 May and 14 May 2026 through Investec Bank under a previously announced share buyback programme. The purchases, executed on the London Stock Exchange at weighte...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Johnson Service Group Wins Strong Shareholder Backing at 2026 AGM
Positive
May 7, 2026
Johnson Service Group PLC reported that all resolutions at its 7 May 2026 annual general meeting were approved by shareholders via poll, including routine business such as adoption of the 2025 accounts, approval of the directors’ remuneratio...
Business Operations and StrategyStock Buyback
Johnson Service Group Launches £55 Million Share Buyback
Positive
May 7, 2026
Johnson Service Group has launched a new share buyback programme of up to £55 million, instructing Investec Bank to repurchase ordinary shares on the open market under preset parameters until no later than 1 March 2027. The repurchased shares...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Johnson Service launches £55m buyback as workwear growth offsets HORECA softness
Positive
May 7, 2026
Johnson Service Group reported a 1.4% rise in first-quarter revenue to £123 million, driven by 3.9% organic growth in its workwear division, while HORECA revenues softened slightly amid pricing and contract renewal pressures. Management conti...
Regulatory Filings and Compliance
Johnson Service Group Confirms Total Voting Rights and Share Capital
Neutral
May 1, 2026
Johnson Service Group PLC has confirmed that, as of 30 April 2026, its issued share capital comprises 379,817,126 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 StrategyDelistings and Listing Changes
Johnson Service Group Admits New Shares to Meet Incentive Plan Awards
Neutral
Apr 28, 2026
Johnson Service Group PLC has admitted 1,544,110 new ordinary shares of 10 pence each to trading on the London Stock Exchange’s Main Market, following the exercise of vested awards under its 2028 Long-Term Incentive Plan and its 2018 Long-Te...
Private Placements and FinancingRegulatory Filings and Compliance
Johnson Service Seeks Admission of New Shares After Incentive Plan Awards
Neutral
Apr 21, 2026
Johnson Service Group has applied for the admission of 1,544,110 new ordinary shares of 10 pence each to trading on the Main Market of the London Stock Exchange, following the exercise of vested awards under its 2018 Long-Term Incentive Plan and r...
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...
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.