Johnson Service revenue and profits grow in FY25, margins edge toward target
Textile services provider Johnson Service Group Plc said on Friday that revenues had increased in the year ended 31 December, helping it deliver solid adjusted operating profit growth.
Johnson Service expects revenues to have risen 4.3% to £535.6m, while revenue in its catering division was set to increase to £390m from £371.2m, and workwear revenue was forecast to edge up to £145.6m from £142.2m. On an organic basis, group revenue sas seen roughly 1.4% higher than the prior year.
The FTSE 250-listed firm also stated tight cost control and efficiency gains had driven strong year‑on‑year growth in adjusted operating profits, in line with market expectations, with margins continuing to move towards its 2026 target of at least 14%.
Johnson Service said catering industry trading remained resilient in the final months of 2025, with full‑year organic revenue growth expected to come in at around 1%, while workwear volumes were described as stable, supported by new installations and a 94% customer retention rate.
Net debt, excluding IFRS 16 lease liabilities, stood at about £112m at 31 December, up from £68.6m a year earlier, reflecting a £54.7m cash outflow linked to share buybacks.
"We have a strong business which, as we have previously demonstrated, is well placed to benefit from opportunities as they arise," said Johnson Service. "Accordingly, and notwithstanding the ongoing uncertain economic outlook, the board remains confident in delivering another year of progress in 2026 and we remain on track towards achieving our targeted margin of at least 14.0% in 2026."
Reporting by Iain Gilbert at Sharecast.com
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