Johnson Service Group PLC (GB:JSG)
LSE:JSG
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Johnson Service
(LSE:JSG)
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Rating:61Neutral
Price Target:
148.00 p
▲(9.79% Upside)
Action:Reiterated
Date: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
Multi-year revenue recovery and return to profitability
JSG has more than doubled reported revenue from 2020 to 2025 while returning to profit, indicating durable demand and scaling of its staffing platforms. This revenue base and profitability provide a stronger foundation for ongoing investment, margin maintenance and financial resilience over the next several quarters.
Negative Factors
Rising leverage reduces financial flexibility
Debt-to-equity rising materially in three years increases fixed obligations and interest exposure, limiting capacity for opportunistic M&A or counter-cyclical investment. Higher leverage also raises refinancing and covenant risk if top-line or margins deteriorate in a prolonged slowdown.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue recovery and return to profitability
JSG has more than doubled reported revenue from 2020 to 2025 while returning to profit, indicating durable demand and scaling of its staffing platforms. This revenue base and profitability provide a stronger foundation for ongoing investment, margin maintenance and financial resilience over the next several quarters.
Read all positive factors
Johnson Service (JSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£510.85M
Dividend Yield3.18%
Average Volume (3M)1.91M
Price to Earnings (P/E)5.9
Beta (1Y)1.03
Revenue Growth4.29%
EPS Growth7.68%
CountryUK
Employees6,601
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding379,221,500
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
£178.33Price Target Upside32.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)£546.70M
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 | 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
130.57
Positive
134.14
Positive
135.72
Negative
Market Momentum
1.22
Negative
53.28
Neutral
57.86
Neutral
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 above the 20-day moving average (MA) of 133.40, above the 50-day MA of 130.57, and below the 200-day MA of 135.72, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 57.86 is Neutral, 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 | £2.64B | 12.29 | 16.69% | 1.27% | 1.69% | 276.44% | |
76 Outperform | £2.18B | 13.52 | 20.41% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £11.88B | 13.41 | 6.51% | 1.68% | -3.59% | 15.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £510.85M | 5.91 | 13.04% | 3.18% | 4.29% | 7.68% | |
42 Neutral | £1.81B | 81.71 | -5.79% | 0.36% | -2.90% | -2.16% | |
41 Neutral | £377.30M | -0.78 | -142.88% | ― | -7.30% | -311.68% |
* Industrials Sector Average
GB:JSG
Johnson Service
134.90
-8.86
-6.16%
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Johnson Service Corporate Events
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...
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...
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.