Overview
UK textile rental firm's FY25 revenue rose 4.3%, with strong profit growth
Adjusted operating profit for FY25 increased 16.4%, aligning with market expectations
Company completed £55 mln share buyback program in January 2026
Outlook
Company expects adjusted operating margin of at least 14.0% in 2026
Johnson Service Group plans targeted investment for expansion in 2026
Company to review options for further share buybacks in 2026
Result Drivers
PRICE INCREASES AND PRODUCTIVITY - Co said price increases and productivity improvements offset cost inflation, aiding profit growth
HORECA DIVISION - HORECA revenue rose 5%, with improved operating profit margin due to production efficiencies and lower energy costs
WORKWEAR DIVISION - Workwear revenue grew 2.4%, supported by stable volumes and high customer retention
Company press release: ID:nRSC0228Va
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted EBIT
GBP 72.50 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the textiles & leather goods peer group is "buy"
Wall Street's median 12-month price target for Johnson Service Group PLC is GBp200.00, about 38.9% above its March 2 closing price of GBp144.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)