Johnson Service Group (LON:JSG) Releases Earnings Results

Johnson Service Group (LON:JSG) released its earnings results on Tuesday. The company reported GBX 5 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Johnson Service Group had a net margin of 6.98% and a return on equity of 13.74%.

Here are the key takeaways from Johnson Service Group’s conference call:

• Profitability improved despite modest revenue pressure: H1 revenue rose 0.2% to £258 million, while adjusted operating profit increased 3.8% to £29.8 million and operating margin expanded 50 basis points to 11.6%.
• Workwear remained resilient, with organic revenue growth of 2.6%, a strong 94% customer retention rate and a 50-basis-point margin improvement to 14.9%.
• The board increased the interim dividend 12.5% to 1.8 pence per share, while the £55 million buyback is more than 50% complete and is expected to be substantially finished by year-end.
• HORECA organic revenue declined 2% as softer customer volumes and cautious decision-making offset price increases; management expects these weaker trading conditions to persist through the rest of the year.
• Management maintained its outlook for another year of progress and an adjusted operating margin of at least 14% in 2026, relying on pricing, automation, productivity gains and cost control to offset labor inflation and uncertain energy costs.

Johnson Service Group Stock Performance

Shares of JSG stock traded down GBX 0.50 during mid-day trading on Thursday, reaching GBX 134.10. The stock had a trading volume of 782,885 shares, compared to its average volume of 4,930,621. Johnson Service Group has a 1-year low of GBX 123.80 and a 1-year high of GBX 172.10. The company has a current ratio of 1.02, a quick ratio of 0.80 and a debt-to-equity ratio of 22.99. The firm has a market cap of £484.45 million, a price-to-earnings ratio of 14.58, a PEG ratio of 10.18 and a beta of 1.03. The business’s fifty day moving average is GBX 148.95 and its 200-day moving average is GBX 143.20.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on JSG shares. Berenberg Bank cut their price objective on shares of Johnson Service Group from GBX 205 to GBX 200 and set a “buy” rating for the company in a research report on Wednesday. Peel Hunt reissued a “buy” rating and set a GBX 178 target price on shares of Johnson Service Group in a research report on Monday, July 13th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Johnson Service Group currently has a consensus rating of “Moderate Buy” and an average price target of GBX 176.

About Johnson Service Group

Johnson Service Group provides high quality textile rental and related services across a range of sectors throughout the UK.

Our family of high quality businesses includes “Johnsons Workwear”, “Johnsons Hotel Linen”, “Johnsons Hotel, Restaurant & Catering Linen” and “Johnsons Restaurant & Catering Linen”, each of which provides a high-quality and reliable service combined with outstanding customer care.

Across our entire family, our priorities are always clear and everything we do centres on the core values of Johnson Service Group – quality, reliability and service.

A strategy to consistently create value for shareholders, deliver outstanding customer service and offer fulfilling careers to employees lies at the heart of our business.