REG - Johnson Service Grp. - Interim Results: Six Months ended 30 June 2025
Tue 07:00
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RNS Number : 5337X Johnson Service Group PLC 02 September 2025
2 September 2025
TIDM: JSG
Johnson Service Group PLC
('JSG' or 'the Group')
Interim Results for the Six Months ended 30 June 2025
Further progress made in the first half
Full year in line with expectations and on track for a margin of at least 14%
in 2026
Intention to launch a further share buyback programme
FINANCIAL HIGHLIGHTS
H1 2025 H1 2024 Increase FY 2024
Adjusted results
Revenue £257.5m £244.1m +5.5% £513.4m
Adjusted operating profit(1) £28.7m £25.2m +13.9% £62.3m
Adjusted operating profit margin(1) 11.1% 10.3% +80bps 12.1%
Adjusted EBITDA margin(1) 29.3% 28.3% +100bps 29.7%
Adjusted profit before taxation(2) £24.9m £21.5m +15.8% £54.8m
Adjusted diluted earnings per share(3) 4.6p 3.9p +17.9% 10.1p
Statutory results
Operating profit £23.7m £22.4m +5.8% £54.7m
Profit before taxation £19.9m £18.7m +6.4% £47.2m
Diluted earnings per share 3.6p 3.3p +9.1% 8.4p
Dividend 1.6p 1.3p +23.1% 4.0p
§ Organic revenue increased in HORECA by 1.4% and in Workwear by 1.3%.
§ Revenue for the HORECA division increased by 7.2% to £185.4 million (2024:
£172.9 million) whilst adjusted operating profit increased by 22.3% to £22.5
million (2024: £18.4 million) giving an improved margin of 12.1% (2024:
10.6%), an increase of 150 basis points.
§ Revenue for the Workwear division increased by 1.3% to £72.1 million
(2024: £71.2 million) whilst adjusted operating profit increased by 2.0% to
£10.4 million (2024: £10.2 million) giving a slightly improved margin of
14.4% (2024: 14.3%).
§ £30.0 million share buyback completed, bringing total amount returned to
Shareholders through buybacks since 2022 to £65.3 million.
§ Revolving credit facility increased by £15.0 million to £135.0 million,
expiring August 2027.
OPERATIONAL HIGHLIGHTS
§ Following a slower than anticipated start to the summer months, the slight
improvement in HORECA volumes we reported in early July was maintained.
§ Movement of work to Crawley, together with installation of new sales, is
progressing to plan.
§ Workwear customer retention levels continued to improve and were 94% at
June 2025 (December 2024: 93%).
§ Energy costs remain elevated but are continuing to reduce as a percentage
of revenue.
§ Productivity improvements and other actions helping to offset cost
inflation.
§ Successful admission to trading on the Main Market of the London Stock
Exchange on 1 August 2025.
§ Fourth Sustainability Report published in June 2025.
OUTLOOK
§ Further share buyback planned to return up to an additional £25.0 million
to Shareholders to be launched shortly.
§ Strong balance sheet and cash generation allows the Group to drive
efficiencies through ongoing investment across the estate and to capitalise on
acquisition opportunities.
§ Adjusted operating profit margin improvement on track for target of at
least 14.0% in 2026.
§ Confident in reporting full year adjusted operating profit in line with
current market expectations.
Notes
1 'Adjusted EBITDA' refers to operating profit before amortisation of
intangible assets (excluding software amortisation) and exceptional items
(defined as 'adjusted operating profit') plus the depreciation charge for
property, plant and equipment, textile rental items and right of use assets
plus software amortisation.
2 'Adjusted profit before taxation' refers to adjusted operating profit
less total finance costs.
3 'Adjusted diluted earnings per share' refers to earnings per share
calculated on adjusted profit after taxation.
Peter Egan, Chief Executive Officer of Johnson Service Group PLC, commented:
"I am pleased to report that we have delivered further progress in the first
half of 2025. Our continued focus on operational excellence and margin
improvement has positioned us well to achieve our target of at least a 14.0%
adjusted operating profit margin in 2026 and we are on track to meet full year
adjusted operating profit in line with market expectations.
Our successful admission to the Main Market on 1 August 2025 marks a
significant milestone in our growth journey, reflecting the strength and
maturity of our business. With robust cash generation, we continue to have a
disciplined approach to capital allocation and focus on delivering value to
shareholders by driving efficiencies through ongoing investment across the
estate and seeking out complementary acquisition opportunities. In addition,
we are today announcing our intention to launch a further £25.0 million share
buyback programme, having completed the £30.0 million share buyback announced
in March 2025.
Most importantly, I would like to thank our employees for their support, hard
work and significant contribution to the progress of the business over the
last six months."
SELL-SIDE ANALYSTS' MEETING
A presentation for sell-side analysts will be held today at 09:00, at Investec
Bank plc, 30 Gresham Street, London EC2V 7QP. details of which will be
distributed by Camarco. A copy of the presentation and audio recording of
the meeting will be available on the Group's website (www.jsg.com
(http://www.jsg.com) ) following the meeting.
ENQUIRIES
Johnson Service Group PLC
Peter Egan, CEO
Yvonne Monaghan, CFO
Tel: 020 3757 4992/4981 (on the day)
Tel: 01928 704 600 (thereafter)
Investec Bank plc Camarco (Financial PR)
David Flin Ginny Pulbrook
Virginia Bull Letaba Rimell
William Brinkley
Tel: 020 7597 5970 Tel: 020 3757 4992/4981
BASIS OF PREPARATION
Throughout this statement, and consistent with prior years, a number of
alternative performance measures ('APMs') are used to describe the Group's
performance. APMs are not recognised under UK-adopted international
accounting standards. Whilst the Board uses APMs to manage and assess the
performance of the Group, and believes they are representative of ongoing
trading, facilitate meaningful year-on-year comparisons, and hence provide
useful information to stakeholders, it is cognisant that they do have
limitations and should not be regarded as a complete picture of the Group's
financial performance. APMs, which include adjusted operating profit,
adjusted profit before taxation, adjusted EBITDA, adjusted EPS and net debt
excluding IFRS 16 lease liabilities, are defined within note 1 (Basis of
Preparation) and are reconciled to statutory reporting measures in notes 2, 5,
8 and 18.
PERFORMANCE
Total Group revenue increased by 5.5% to £257.5 million (2024: £244.1
million). Organic revenue growth was 1.4% compared to the first half of
2024. Within Hotel, Restaurant and Catering ('HORECA'), and as highlighted
in our trading update on 10 July 2025, we experienced a slower than
anticipated start to the summer months, reflecting the challenges in the wider
hospitality market, although the slight improvement in volumes we reported in
early July was maintained. Workwear revenue increased slightly during the
first half of the year, trading in line with our expectations, and,
encouragingly, revenue is expected to continue to increase in the second half
reflecting recent customer installations.
Recent increases in employment costs, in particular the increase in UK
National Insurance, have added to cost pressures. Energy, as a percentage of
revenue, has continued to reduce but remains a significantly higher cost than
has been experienced historically. Our stated policy of proactively fixing
prices for the coming months to obtain and manage some degree of certainty
over the cost of supply is being maintained giving us visibility of a further
reduction as a percentage of revenue in the second half. Both labour and
energy costs are being proactively managed through investment in our estate
which increases productivity efficiencies and lowers energy usage.
Adjusted operating profit margin increased by 80 basis points to 11.1% (June
2024: 10.3%), reflecting a 170 basis points increase in labour costs to 46.4%
of revenue (2024: 44.7%), offset by a 160 basis points reduction in energy
costs to 7.8% of revenue (June 2024: 9.4%) and a 90 basis points reduction in
all other costs. We are continuing to streamline our operations, improve
capacity at existing sites and implement price increases and, accordingly, the
Board remains of the opinion that the overall Group adjusted operating profit
margin will reach at least 14.0% by 2026.
Overall, we are encouraged with the Group's performance and improving margin.
FINANCIAL REVIEW
Financial Results
Revenue in the period increased by 5.5% to £257.5 million (June 2024: £244.1
million). Adjusted EBITDA was £75.4 million (June 2024: £69.2 million)
giving an improved margin of 29.3% (June 2024: 28.3%). Adjusted operating
profit increased by 13.9% to £28.7 million (June 2024: £25.2 million).
Total finance costs were £3.8 million (June 2024: £3.7 million) reflecting
higher borrowings over the period, most notably as a result of the £16.8
million cash outflow as part of the recent £30.0 million share buyback
programme.
Adjusted profit before taxation increased by 15.8% to £24.9 million (June
2024: £21.5 million). Statutory profit before taxation, after amortisation
of intangible assets (excluding software amortisation) of £4.0 million (June
2024: £2.8 million) and an exceptional charge of £1.0 million (June 2024:
£nil) was £19.9 million (June 2024: £18.7 million).
The tax rate on the adjusted profit before taxation, excluding exceptional
items and amortisation of intangible assets (excluding software amortisation),
was 24.1% (June 2024: 24.7%). The rate is below the headline UK corporation
tax rate for the full year of 25.0%, due to the effect of expenses not
deductible for taxation being offset by short-term timing differences and the
impact of the lower rate of 12.5% applied to profits generated in the Republic
of Ireland.
Adjusted diluted earnings per share was 4.6 pence (June 2024: 3.9 pence).
Dividend Reflecting Confidence in the Future
An increased interim dividend of 1.6 pence per share (June 2024: 1.3 pence per
share) will be paid on 4 November 2025 to those Shareholders on the register
of members on 3 October 2025. The ex-dividend date is 2 October 2025. The
increased dividend maintains our dividend cover of 2.5 times and is in line
with our stated capital allocation policy.
Cash Flow and Net Debt
Free cash flow (calculated as net cash generated from operating activities,
less net spend on textile rental items, less the capital element of leases) in
the first half of the year was £25.0 million compared to £24.5 million in
the first half of 2024.
Bank debt at 30 June 2025 was £99.0 million (December 2024: £68.6
million). The increase is largely attributed to significant capital
investment in the business and £16.8 million of funds utilised in the share
buyback. After including the impact of IFRS 16 lease liabilities, net debt
at 30 June 2025 was £145.0 million (December 2024: £115.6 million).
Bank Facility
In July 2025, the Group increased its revolving credit facility to £135.0
million, by exercising the remaining £15.0 million accordion option. The
facility, which expires in August 2027, is in excess of our anticipated
borrowing requirements and provides sufficient liquidity for current
commitments and plans.
The current margin on the facility is 1.45% over SONIA or the relevant EURIBOR
rate, as applicable. Covenants remain unchanged and comprise a leverage
covenant (total debt to EBITDA) of less than three times and interest cover of
not less than four times. At 30 June 2025, the leverage ratio was 0.9 times.
Return on Capital Employed ('ROCE')
ROCE, calculated as rolling 12-month adjusted operating profit divided by the
average of opening and closing Shareholders' equity, net debt and
post-employment benefit obligations for the same 12-month period, was 15.5%
(June 2024: 14.8%; December 2024: 15.5%).
Defined Benefit Pension Scheme ('the Scheme')
The recorded surplus for the Scheme, calculated in accordance with IAS 19, was
£6.7 million at June 2025, compared to a surplus of £3.8 million at December
2024. The improvement in the position is due, in part, to a higher discount
rate assumed on liabilities and a lower assumed inflation rate. The Scheme
continues to have a significant portion of assets invested so as to hedge
against movements in liabilities, thereby reducing overall volatility with the
hedged target increasing to 85% in July 2025.
The next triennial valuation of the Scheme is due as at 30 September 2025.
We have agreed with the Trustee to cease deficit contributions to the Scheme
at least until the results of that triennial valuation are known, as we work
towards a buy out of the Scheme in the medium term.
Capital Structure and Share Buyback
Our capital allocation policy remains unchanged. The Group's objective is to
employ a disciplined approach to investment, returns and capital efficiency
to deliver sustainable compounding earnings growth whilst also maintaining a
strong balance sheet and increasing ROCE. We continue to see exciting
opportunities to deploy capital organically whilst our inorganic growth
strategy continues to be supported by an ongoing M&A pipeline.
In the period since September 2022, we have undertaken three share buyback
programmes returning £65.3 million to Shareholders, established a presence in
the Republic of Ireland through the £27.1 million acquisition of Harkglade
Limited, established our Johnsons Luxury Linen business through the £5.8
million acquisition of Regency Laundry Limited and the £20.6 million
acquisition of Empire Linen Services Limited, invested in the opening of a new
site in Crawley and undertaken significant capital investment across many of
our other sites. Even after taking into consideration these investments and
the payment of dividends, the Group continues to have significant headroom
under its committed facilities and target leverage of 1-1.5 times to continue
to pursue investment opportunities, both organic and inorganic, as they arise.
Accordingly, the Board is pleased to confirm that it intends to undertake a
further share buyback over the period to March 2026 to return up to £25.0
million, based on currently available resources, to Shareholders. The Board
will continue to actively review its options once this programme is completed.
OPERATIONAL REVIEW
Our Businesses
The Group provides textile rental and related services throughout the UK and
Republic of Ireland.
Within our Hotel, Restaurant and Catering ('HORECA') division, 'Johnsons Hotel
Linen', our high-volume linen business, primarily serves group and independent
large hotel customers, 'Johnsons Hotel, Restaurant and Catering Linen'
provides premium linen services to restaurant, hospitality and corporate event
customers whilst 'Johnsons Luxury Linen', which comprises of Empire and
Regency, provides bespoke linen predominantly to four and five-star luxury
hotels. Also, within HORECA, 'Johnsons Ireland' serves both hospitality and
healthcare customers. Our Workwear division comprises solely of 'Johnsons
Workwear', which predominantly provides workwear rental, protective wear and
laundry services to UK corporates across all industry sectors.
Cost challenges, particularly in relation to labour, remain not only for
ourselves but also for our competitors and our customers. Following a strong
first quarter, the effect of increased labour costs has impacted some of our
end customers, particularly within the hospitality market, and price increases
and renewals are more challenging. Whilst the market remains competitive, we
are focused on continuing to deliver an excellent service which is
commensurate with our pricing levels. We are also continuing to focus on
improving efficiencies, driven by capital investment and process changes, but
will, like many other businesses, need to pass on some of the additional cost
through price increases. Although such discussions are challenging, the
basis of excellent customer service delivery is an advantage and supports
pricing across our laundry estate.
Energy
Energy costs (comprising gas, electricity and fuel) still remain at higher
levels than historically. Costs for the first half of 2025 represented 7.8%
of revenue and, encouragingly, were lower than the equivalent period in 2024
but remain higher than in 2019 (June 2024: 9.4%; June 2019: 6.5%). We
anticipate a further modest reduction in this percentage in the second half
such that the full year cost, as a percentage of revenue, will be slightly
lower than at the half year.
Our policy continues to be to fix gas and electricity prices on a rolling
basis, building a position so that the upcoming months are largely fixed.
This provides certainty but also means that costs do not immediately reflect
falls, or increases, in spot prices. We currently have on average, some 75%
of our anticipated electricity usage and some 90% of our anticipated gas usage
fixed for the remainder of 2025. Looking ahead, approximately 50% of our
anticipated electricity requirement is fixed for 2026 with around 30% for
2027. Similarly, we have fixed pricing in place for some 60% of our
anticipated gas requirement in 2026 and some 40% for 2027. We will continue
to follow our current policy as we go forward.
Labour
In the six months to 30 June 2025, labour, as a percentage of revenue,
increased to 46.4% compared to 44.7% in the six months to 30 June 2024,
reflective of increases to the National Minimum Wage and Pay Related Social
Insurance in January 2025 in the Republic of Ireland and increases in the
National Living Wage and National Insurance in the UK in April 2025. We are
confident that labour, as a percentage of revenue, will remain relatively
stable for the second half of 2025 and into 2026.
HORECA Division
Total revenue for the HORECA division increased by 7.2% to £185.4 million
from £172.9 million in 2024. Organic growth was 1.4%. Adjusted
EBITDA was £53.7 million (June 2024: £48.1 million) giving an improved
margin of 29.0% (June 2024: 27.8%). Adjusted operating profit was £22.5
million (June 2024: £18.4 million), an increase of 22.3%.
The cost increases being experienced across UK businesses are encouraging some
of our smaller, independent competitors to review their business strategy and,
as a result, we have added contracts with an annualised revenue of some £4.0
million to the division during the first half of 2025. We anticipate that
further opportunities will continue to arise.
Johnsons Hotel Linen
Trading performance and volumes for the first six months of 2025 were in line
with our expectations overall, although forecasting volume remains challenging
due to a continuing change in linen management by customers, geographical
variances and unpredictable hotel occupancy rates.
Continued provision of an excellent professional service, on time and in full,
remains at the forefront of the business, as well as building long-term
professional partnerships with customers.
Pwllheli and Edinburgh benefited from large capital investment to replace
sorting systems and automatic dryers, as well as stand-alone washing machines
and dryers being upgraded in most sites. New boilers and the replacement of
older ironers for newer models have also been actioned in five of our sites as
we strive to continually upgrade our facilities to improve operational
efficiency and capacity whilst at the same time reducing our carbon emissions.
The driver monitoring system trialled at Chester and Reading has been
successfully rolled out throughout the business and is contributing to a
reduction in the rate of accidents. Our Enfield depot has now fully
relocated to South Mimms, supporting and improving our delivery capability
into London and the surrounding areas.
Plastic wrapping of clean, delivered product has been removed from both our
Chester and Birmingham sites, a programme in line with our sustainability
objectives. Instead, linen is now delivered in reusable, washable bags which
can also be used for linen storage at customers' premises. Roll out across
the estate will continue in 2025.
Johnsons Hotel, Restaurant & Catering
Our new location in Crawley began processing in March 2025 and, since then, we
have moved a significant number of customers located in London and the
Southeast into the site. There, they will enjoy a laundry process that
consumes half of the energy of a traditional laundry, provides significant
water recycling opportunities, utilises renewable energy sources and
undertakes deliveries using vehicles powered by HVO, which is 90% carbon free.
This, combined with investment in new, more efficient, boiler installations
in Wrexham and Shaftesbury, continued water recycling in Hayle and Shaftesbury
and reductions in plastic packaging across the estate, means we are making
significant and lasting progress towards our sustainability targets.
Our sales pipeline remains consistently strong and, accordingly, we are on
track to achieve targeted new sales for the full year. The focus of the
second half remains to move further volume into our Crawley site to improve
efficiency.
Johnsons Luxury Linen
The Luxury Linen business is continuing to focus on growth in five-star luxury
hotel customers and has seen both strong retention levels and significant high
profile wins in recent months. The new sales pipeline continues to be
encouraging.
The £1.3 million investment in plant and machinery at our Corsham site at the
end of 2024, which increased processing capacity there by almost 20%, is now
being utilised as the plant hits record volumes and efficiencies. The luxury
linen sector is seeing occupancy levels in line with 2024 and plans for
increased capacity are being developed to further expand this part of our
business.
The Empire business, acquired in September 2024, continues to transition well
into the Group. The local management team have embraced change and are now
working within more formal operating frameworks and leading best practice
methodologies.
Johnsons Ireland
Johnsons Ireland comprises Johnsons Celtic Linen in the south and Johnsons
Belfast in the north.
In hospitality, volumes were as expected with some regional variations in
volume being offset by the addition of over 1,300 rooms. Healthcare volumes
have also been as expected with an increase in day procedures performed by
hospitals as demand grows from caring for a growing and ageing population.
The capital investment of £6.3 million in Wexford and Naas that started in
2024 has been completed. This investment includes the installation of a
state-of-the-art sortation system, a high-speed ironer line, a continuous
batch washer system, additional drying capacity and a new automated chemical
dosing system. These new pieces of equipment help to optimise washing
throughput and energy efficiency and will increase capacity in Wexford by some
20% and in Naas by some 40%. In addition to installing new processing
equipment, we have also upgraded employee welfare facilities and offices.
We continue to roll out our Johnsons Ireland rebranding, with the first
rebranded commercial vehicles now on the road. Our website and social media
presence will follow and our sites have already been rebranded as we continue
to solidify the business as being part of the overall Johnsons Family.
We are also introducing a new information technology infrastructure across the
three sites, completing stage one of this in Belfast with a further roll out
in Wexford and Naas due for completion later this year. This will ensure we
have consistency across the business, provide a more resilient operating
environment and allow us to move forward in our digital journey.
To help drive our operational strategy and support further growth, the
management team has been strengthened. Recruitment and employee retention
remain strong and training programmes are in place at all levels.
Workwear Division
Revenue for the Workwear division was £72.1 million (June 2024: £71.2
million). Adjusted EBITDA increased by 5.7% to £25.9 million (June 2024:
£24.5 million), giving an improved margin of 35.9% (June 2024: 34.4%).
Adjusted operating profit was £10.4 million (June 2024: £10.2 million).
The first half of the year has seen measured progress within the division,
with gains across a range of focus areas. We have seen good momentum in new
business sales, improving levels of customer retention and the effective
delivery of key projects. Collectively, these have fostered a positive
environment across the teams, marked by a strong sense of alignment and
clarity around divisional priorities.
The sales team has delivered a good performance in the first half of the year
and momentum has continued into recent months. One new large food customer
required urgent garment installation, and our flexible approach meant that ten
of their processing sites were installed six months ahead of schedule. This
achievement highlights not only the team's commercial strength but also our
ability to deliver complex implementations with speed and precision, further
strengthening our reputation for operational excellence.
Customer retention is now 94% and trending towards historic levels, validating
the strength of our customer relationships, the consistent delivery of our
service and our responsiveness to evolving customer needs. The renewal rate
also reflects the effectiveness of our proactive engagement strategy, built
around personalised account management and ongoing customer interaction.
Capital expenditure in the first half included spend on new commercial
vehicles, laundry processing equipment and boiler systems at several sites,
all of which deliver operational resilience whilst at the same time assist in
reducing our carbon footprint. The project to relocate operations from
Lancaster to Manchester has been successfully implemented, with no disruption
to delivery service, ensuring a smooth transition. The cost of the project
in the first half was £0.3 million and has been charged to exceptional
costs. The full year cost is expected to be £1.2 million.
At the end of June 2025 our small industrial workwear processing unit in
Bristol suffered a fire which has rendered that part of the site inoperable.
Work is being processed at our sites in Exeter and Treforest and, importantly,
there has been no disruption to customer service. An insurance claim has
been made and is being progressed, the net impact of which is not expected to
be material.
EMPLOYEES
Our employees are key to the continuing success of our business. The Board
would like to thank them for their support, hard work and significant
contribution to the progress of the business over the last six months. The
teamwork, dedication and determination demonstrated to deliver a professional
and on time service to our customers is a credit to each and every one of
them.
Employee engagement activity remains ongoing, supporting our people and
providing clean, safe and enjoyable environments to work in. The scores from
our employee engagement surveys were outstanding, reflecting the commitment
and enthusiasm of our employees across all of our operating locations.
SUSTAINABILITY
The Board, as a whole, has overall responsibility for environmental and social
matters and we recognise our duty to stakeholders to operate the business in
an ethical and responsible manner. We are committed to developing our
environmental and social responsibility agenda and continue to make excellent
progress with embedding our sustainability programme across the Group.
We are continuing to work with both our customers and suppliers as we make
progress in meeting our goals and we have recently published our fourth
Sustainability Report which sets out the progress we have made and the targets
we have set ourselves. The report can be found on our website at www.jsg.com
(http://www.jsg.com) .
The reduction in consumption of single use plastics is a key focus across the
business and we have already made progress this year.
We have been awarded a silver medal by EcoVadis, the world's most trusted
provider of business sustainability ratings.
OUTLOOK
The Board is pleased with the further progress made by the Group in the first
half of the year and with the results reported today.
During the first six months we have continued to increase efficiency and
capacity across the business through our ongoing capital investment plan.
This investment, combined with our resilient business model, will help us to
deliver our margin target and offset the challenges created by the increasing
cost of labour.
We have a strong balance sheet, with a highly cash generative model, so are
well placed to capitalise on appropriate opportunities as they arise. In
accordance with our stated capital allocation policy, we intend to launch a
further share buyback programme, based on currently available resources, for
up to £25.0 million over the period to March 2026.
Notwithstanding the uncertainty of the current economic environment, we expect
to report another year of progress. We are confident in reporting a full
year adjusted operating profit in line with current market expectations and
achieving an overall Group adjusted operating profit margin of at least 14.0%
by 2026.
RESPONSIBILITY STATEMENT
The condensed consolidated interim financial statements comply with the
Disclosure Guidance and Transparency Rules ('DTR') of the United Kingdom's
Financial Conduct Authority in respect of the requirement to produce a
half-yearly financial report. The condensed consolidated interim financial
statements are the responsibility of, and have been approved by, the
Directors.
The Directors confirm that to the best of their knowledge:
§ the condensed consolidated interim financial statements have been prepared
in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the
United Kingdom;
§ this interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months of the financial year and a description of the principal risks and
uncertainties for the remaining six months of the year); and
§ this interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).
The Directors of Johnson Service Group PLC are listed in the Johnson Service
Group PLC Annual Report for 2024 and remain unchanged. Details of the
Directors are available on the Johnson Service Group PLC website: www.jsg.com
(http://www.jsg.com)
By order of the Board
Peter
Egan
Yvonne Monaghan
Chief Executive Officer
Chief Financial Officer
2 September
2025 2
September 2025
Forward Looking Statements
Certain statements in these condensed consolidated interim financial
statements constitute forward-looking statements. Any statement in this
document that is not a statement of historical fact including, without
limitation, those regarding the Group's future expectations, operations,
financial performance, financial condition and business is a forward-looking
statement. Such forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially. These
risks and uncertainties include, among other factors, changing economic,
financial, business or other market conditions. These and other factors
could adversely affect the outcome and financial effects of the plans and
events described in these condensed consolidated interim financial
statements. As a result, you are cautioned not to place reliance on such
forward-looking statements. Nothing in this document should be construed as
a profit forecast.
Consolidated Income Statement
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
Note £m £m £m
Revenue 2 257.5 244.1 513.4
Impairment loss on trade receivables (0.5) (0.5) (1.2)
All other costs (233.3) (221.2) (457.5)
Operating profit 2 23.7 22.4 54.7
Operating profit before amortisation of intangible assets (excluding software 28.7 25.2 62.3
amortisation) and exceptional items
Amortisation of intangible assets (excluding software amortisation) (4.0) (2.8) (7.2)
Exceptional items 3 (1.0) - (0.4)
Operating profit 2 23.7 22.4 54.7
Net finance cost 4 (3.8) (3.7) (7.5)
Profit before taxation 19.9 18.7 47.2
Taxation charge 7 (5.3) (4.9) (11.7)
Profit for the period from continuing operations 14.6 13.8 35.5
Profit for the period from discontinued operations - - 0.1
Profit for the period attributable to equity holders 14.6 13.8 35.6
Earnings per share 8
Basic earnings per share 3.6p 3.3p 8.5p
Diluted earnings per share 3.6p 3.3p 8.4p
See note 8 for adjusted basic earnings per share and adjusted diluted earnings
per share.
Consolidated Statement of Comprehensive Income
Half year to Half year to 30 June Year ended
30 June 2024 31 December
2025 2024
Note £m £m £m
Profit for the period 14.6 13.8 35.6
Items that will not be subsequently reclassified to profit or loss
- Re-measurement and experience gains on post-employment benefits 14 2.8 3.8
3.5
Taxation in respect of re-measurement and experience gains (0.7) (0.9) (0.9)
Items that may be subsequently reclassified to profit or loss
- Cash flow hedges (net of taxation) - fair value (losses) / gains (0.4) 0.3 (0.1)
- transfers to administrative expenses 0.2 0.1 0.5
Net (loss) / gain on hedge of a net investment 0.6 1.1
(0.9)
Exchange differences on translation of foreign operations 1.0 (0.5) (1.2)
Other comprehensive income for the period 2.0 3.1 3.2
Total comprehensive income for the period 16.6 16.9 38.8
The notes on pages 17 to 33 form an integral part of these condensed
consolidated interim financial statements.
Consolidated Statement of Changes in Shareholders' Equity
Share Share Merger Capital Redemption Reserve Hedge Translation Reserve Retained Earnings Total
Capital Premium Reserve Reserve Equity
£m £m £m £m £m £m £m £m
Balance at 1 January 2024 41.4 16.8 1.6 3.7 (0.6) - 216.2 279.1
Profit for the period - - - - - - 13.8 13.8
Other comprehensive income - - - - 0.4 - 2.7 3.1
Total comprehensive - - - - 0.4 - 16.5 16.9
income for the period
Share options - - - - - - 0.6 0.6
(value of employee services)
Dividend paid - - - - - - (7.9) (7.9)
Transactions with Shareholders - - - - - - (7.3) (7.3)
recognised directly in Shareholders' equity
Balance at 30 June 2024 41.4 16.8 1.6 3.7 (0.2) - 225.4 288.7
Profit for the period - - - - - - 21.8 21.8
Other comprehensive income - - - - - - 0.1 0.1
Total comprehensive - - - - - - 21.9 21.9
income for the period
Share options - - - - - - 0.9 0.9
(value of employee services)
Deferred tax on share options - - - - - - 0.2 0.2
Issue of share capital 0.1 0.5 - - - - - 0.6
Dividend paid - - - - - - (5.4) (5.4)
Transactions with Shareholders 0.1 0.5 - - - - (4.3) (3.7)
recognised directly in Shareholders' equity
Balance at 31 December 2024 41.5 17.3 1.6 3.7 (0.2) - 243.0 306.9
Profit for the period - - - - - - 14.6 14.6
Other comprehensive (loss) / income - - - - (0.2) 0.1 2.1 2.0
Total comprehensive (loss) / income for the period - - - - (0.2) 0.1 16.7 16.6
Share options - - - - - - 0.8 0.8
(value of employee services)
Purchase of own shares by EBT - - - - - - (0.1) (0.1)
Share buyback (note 15) (1.2) - - 1.2 - - (19.8) (19.8)
Deferred tax on share options - - - - - - 0.2 0.2
Corporation tax on share options - - - - - - (0.1) (0.1)
Issue of share capital 0.2 0.2 - - - - - 0.4
Dividend paid - - - - - - (11.1) (11.1)
Transactions with Shareholders (1.0) 0.2 - 1.2 - - (30.1) (29.7)
recognised directly in Shareholders' equity
Balance at 30 June 2025 40.5 17.5 1.6 4.9 (0.4) 0.1 229.6 293.8
The Group has an Employee Benefit Trust (EBT) to administer share plans and to
acquire shares, using funds contributed by the Group, to meet commitments to
employee share schemes. As at 30 June 2025, the EBT held 2,615 shares (June
2024: 9,024 shares; December 2024: 9,024 shares).
Consolidated Balance Sheet
As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Note
Non-current assets
Goodwill 9 153.8 144.2 153.6
Intangible assets 10 28.1 15.8 29.0
Property, plant and equipment 11 172.6 154.5 160.0
Right-of-use assets 12 41.7 40.0 43.0
Textile rental items 13 73.3 70.3 73.4
Trade and other receivables 0.5 0.4 0.5
Post-employment benefit assets 14 6.7 3.5 3.8
476.7 428.7 463.3
Current assets
Inventories 4.3 2.5 2.3
Trade and other receivables 91.6 85.4 82.4
Reimbursement assets 2.5 2.8 2.6
Current income tax assets 0.8 - -
Cash and cash equivalents 11.5 10.0 11.5
Assets classified as held for sale 0.2 - 0.2
110.9 100.7 99.0
Current liabilities
Trade and other payables 100.1 87.6 94.3
Borrowings 8.8 3.1 8.9
Current income tax liabilities - 0.8 0.7
Lease liabilities 6.8 5.8 6.2
Derivative financial liabilities 0.3 0.2 0.3
Provisions 2.9 3.5 3.2
118.9 101.0 113.6
Non-current liabilities
Post-employment benefit obligations 14 0.3 0.3 0.3
Deferred income tax liabilities 32.9 19.5 28.9
Trade and other payables 0.2 0.2 0.2
Borrowings 101.7 81.0 71.2
Lease liabilities 39.2 37.8 40.8
Derivative financial liabilities 0.3 - -
Provisions 0.3 0.9 0.4
174.9 139.7 141.8
NET ASSETS 293.8 288.7 306.9
Capital and reserves attributable to the Company's Shareholders
Share capital 15 40.5 41.4 41.5
Share premium 17.5 16.8 17.3
Merger reserve 1.6 1.6 1.6
Capital redemption reserve 4.9 3.7 3.7
Hedge reserve (0.4) (0.2) (0.2)
Translation reserve 0.1 - -
Retained earnings 229.6 225.4 243.0
Total equity 293.8 288.7 306.9
The notes on pages 17 to 33 form an integral part of these condensed
consolidated interim financial statements. The condensed consolidated
interim financial statements on pages 13 to 33 were approved by the Board of
Directors on 2 September 2025 and signed on its behalf by:
Yvonne Monaghan
Chief Financial Officer
Consolidated Statement of Cash Flows
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
Note £m £m £m
Cash flows from operating activities
Profit for the period 14.6 13.8 35.6
Adjustments for:
Taxation charge - continuing 7 5.3 4.9 11.7
Finance cost 3.8 3.7 7.5
Depreciation 46.4 43.7 89.6
Amortisation 4.3 3.1 7.9
Profit on disposal of property, plant and equipment (0.1) - -
Increase in inventories (2.0) (0.6) (0.4)
Increase in trade and other receivables (9.2) (8.2) (2.5)
Increase in trade and other payables 1.5 1.5 2.0
Share-based payments 0.8 0.6 1.5
Decrease in provisions (0.3) (0.2) (0.9)
Cash generated from operations 65.1 62.3 152.0
Interest paid (3.7) (3.8) (7.5)
Taxation paid (3.3) (1.1) (2.7)
Net cash generated from operating activities 58.1 57.4 141.8
Cash flows from investing activities
Acquisition of business (including net of cash acquired) (0.2) - (19.6)
Purchase of other intangible assets (2.9) - (6.0)
Purchase of property, plant and equipment (23.8) (29.8) (44.5)
Purchase of software - - (0.1)
Proceeds from sale of property, plant and equipment 0.1 0.1 0.3
Purchase of textile rental items (30.7) (30.8) (63.2)
Proceeds received in respect of special charges 1.0 1.2 2.3
Interest received - - 0.1
Net cash used in investing activities (56.5) (59.3) (130.7)
Cash flows from financing activities
Proceeds from borrowings 52.0 37.0 56.7
Repayments of borrowings (22.5) (18.5) (47.2)
Capital element of leases (3.4) (3.3) (6.3)
Share buyback (16.8) - -
Purchase of own shares by EBT (0.1) - -
Proceeds from issue of share capital 0.4 - 0.6
Dividends paid to company shareholders (11.1) (7.9) (13.3)
Net cash (used in) / generated from financing activities (1.5) 7.3 (9.5)
Net increase in cash and cash equivalents 0.1 5.4 1.6
Cash and cash equivalents at beginning of the period 2.2 0.9 0.9
Effect of exchange rate fluctuations on cash held 0.2 - (0.3)
Cash and cash equivalents at end of the period 18 2.5 6.3 2.2
Cash and cash equivalents comprise:
Cash 11.5 10.0 11.5
Overdraft (9.0) (3.7) (9.3)
Cash and cash equivalents at end of the period 2.5 6.3 2.2
The notes on pages 17 to 33 form an integral part of these condensed
consolidated interim financial statements.
Johnson Service Group PLC (the 'Company') and its subsidiaries (together 'the
Group') provide textile rental and related services across the United Kingdom
('UK') and the Republic of Ireland ('ROI').
The Company is incorporated and domiciled in the UK, its registered number is
523335 and the address of its registered office is Johnson House, Abbots Park,
Monks Way, Preston Brook, Cheshire, WA7 3GH. The Company is a public limited
company and has its primary listing on the Main Market of the London Stock
Exchange.
The condensed consolidated interim financial statements were authorised for
issue by the Board on 2 September 2025.
1 BASIS OF PREPARATION
Overview
These condensed consolidated interim financial statements of the Group are for
the half year ended 30 June 2025. They have been prepared in accordance with
the Disclosure and Transparency Rules of the Financial Conduct Authority and
with IAS 34, 'Interim Financial Reporting', as adopted by the United Kingdom.
The condensed consolidated interim financial statements have not been reviewed
or audited, nor do they comprise statutory accounts for the purpose of Section
434 of the Companies Act 2006, and do not include all of the information or
disclosures required in the annual financial statements and should therefore
be read in conjunction with the Group's 2024 Annual Report and Accounts, which
was prepared in accordance with UK-adopted international accounting standards.
Financial information for the year ended 31 December 2024 included herein is
derived from the statutory accounts for that year, which have been filed with
the Registrar of Companies. The auditors' report on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain a statement under Section 498 of the Companies Act 2006.
Financial information for the half year ended 30 June 2024 included herein is
derived from the condensed consolidated interim financial statements for that
period.
Accounting Policies, Presentation and Computation
The condensed consolidated interim financial statements have been prepared
applying the accounting policies, presentation and methods of computation
applied by the Group in the preparation of the published consolidated
financial statements for the year ended 31 December 2024.
(a) Taxation
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings before exceptional
items. Taxation on exceptional items is accrued as the exceptional items are
recognised. Prior year adjustments in respect of taxation are recognised
when it becomes probable that such adjustment is needed.
(b) Seasonality of operations
Seasonality or cyclicality could affect all of the businesses to varying
extents however, the Directors do not consider such seasonality or cyclicality
to be significant in the context of the condensed consolidated interim
financial statements.
(c) Critical accounting estimates and assumptions
The preparation of the condensed consolidated interim financial statements
requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
Going Concern
Background and Summary
After careful assessment, the Directors have adopted the going concern basis
in preparing these condensed consolidated interim financial statements. The
process and key judgments in coming to this conclusion are set out below.
The Group's business activities, together with details of the financial
position of the Group, its cash flows, liquidity position and borrowing
facilities, are described in the Financial and Operational Review.
Going Concern Assessment
Cash Flows, Covenants and Stress Testing
For the purposes of the going concern assessment, the Directors have prepared
monthly cash flow projections for the period to 31 December 2026 (the
assessment period). The Directors consider this to be a reasonable period
for the going concern assessment as it enables them to consider the potential
impact of macroeconomic and geopolitical factors over an extended period.
The cash flow projections show that the Group has significant headroom against
its committed facilities and can meet its financial covenant obligations.
The Group has also performed a reverse stress test against the base monthly
cash flow projections referred to above in order to determine the performance
level that would result in a reduction in headroom against its committed
facilities to nil or a breach of its covenants. The facility headroom would
reduce to nil in the event that adjusted operating profit reduced to
approximately 65% of 2024 levels. The Directors do not consider this
scenario to be likely.
As a further stress test, the Group considered the impact of increasing
interest rates. The Directors do not consider the magnitude of the increase
in interest rates that would be required in order for a covenant to be
breached, or the facility headroom to reduce to nil, to be plausible.
Each of the stress tests assume no mitigating actions are taken. Mitigating
actions available to the Group, should they be required, include reductions in
discretionary capital expenditure and ceasing dividend payments.
1 BASIS OF PREPARATION (continued)
Liquidity
The Group has access to a committed Revolving Credit Facility of £135.0
million (the 'Facility') which matures in August 2027. The Facility is
considerably in excess of our anticipated borrowings and provides ample
liquidity for current commitments.
Going Concern Statement
After considering the monthly cash flow projections, the stress tests and the
facilities available to the Group, the Directors have a reasonable expectation
that the Group has adequate resources for its operational needs, will remain
in compliance with the financial covenants set out in the bank facility
agreement and will continue in operation for at least the period to 31
December 2026. Accordingly, and having reassessed the principal risks and
uncertainties, the Directors considered it appropriate to adopt the going
concern basis in preparing the condensed consolidated interim financial
statements.
Alternative Performance Measures (APMs)
Overview of APMs
Throughout this Interim Statement, and consistent with prior years, we refer
to a number of APMs. APMs are used by the Group to provide further clarity
and transparency of the Group's financial performance. The APMs are used
internally by management to monitor business performance, budgeting and
forecasting, and for determining Directors' remuneration and that of other
management throughout the business. The APMs, which are not recognised under
UK-adopted international accounting standards, are:
§ 'adjusted operating profit', which refers to continuing operating
profit/(loss) before amortisation of intangible assets (excluding software
amortisation), and exceptional items;
§ 'adjusted profit before taxation', which refers to adjusted operating
profit less finance cost;
§ 'adjusted EBITDA', which refers to adjusted operating profit plus the
depreciation charge for property, plant and equipment, textile rental items
and right of use assets, plus software amortisation;
§ 'adjusted diluted EPS', which refers to EPS calculated based on adjusted
profit after taxation; and
§ 'net debt excluding IFRS 16 lease liabilities'.
The Board considers that the above APMs, all of which exclude the effects of
non-recurring items or non-operating events, provide useful information for
stakeholders on the underlying trends and performance of the Group and
facilitate meaningful year on year comparisons.
Limitations of APMs
The Board is cognisant that APMs do have limitations and should not be
regarded as a complete picture of the Group's financial performance.
Limitations of APMs may include, inter alia:
§ similarly named measures may not be comparable across companies;
§ profit-related APMs may exclude significant, sometimes recurring,
business transactions (e.g. restructuring charges and acquisition-related
costs) that impact financial performance and cash flows; and
§ adjusted operating profit, adjusted profit before taxation, adjusted
EBITDA and adjusted EPS all exclude the amortisation of intangibles acquired
in business combinations, but do not similarly exclude the related revenue.
Reconciliation of APMs to Statutory Performance Measures
Reconciliations between the above APMs and statutory performance measures are
reconciled within this Interim Statement as follows:
§ Adjusted operating profit - note 2
§ Adjusted profit before taxation - note 5
§ Adjusted EBITDA - note 5
§ Adjusted EPS - note 8
§ Net debt excluding IFRS 16 lease liabilities - note 18.
2 SEGMENT ANALYSIS
Segment information is presented based on the Group's management and internal
reporting structure as at 30 June 2025.
The chief operating decision-maker (CODM) has been identified as the Executive
Directors. The CODM reviews the Group's internal reporting in order to
assess performance and allocate resources. The CODM determines the operating
segments based on these reports and on the internal reporting structure.
For reporting purposes, the CODM considered the aggregation criteria set out
within IFRS 8, 'Operating Segments', which allows for two or more operating
segments to be combined as a single reporting segment if:
1) aggregation provides financial statement users with information
that allows them to evaluate the business and the environment in which it
operates; and
2) they have similar economic characteristics (for example, where
similar long-term average gross margins would be expected) and are similar in
each of the following respects:
§ the nature of the products and services;
§ the nature of the production processes;
§ the type or class of customer for their products and services;
§ the methods used to distribute their products or provide their services;
and
§ the nature of the regulatory environment (i.e. banking, insurance or
public utilities), if applicable.
The CODM deems it appropriate to present two reporting segments (in addition
to 'Discontinued Operations' and 'All Other Segments'), being:
1) Hotel, Restaurant and Catering ('HORECA'): comprising of our
Johnsons Hotel Linen, Johnsons Hotel, Restaurant and Catering Linen, Johnsons
Luxury Linen and Johnsons Ireland businesses, each of which are a separate
operating segment.
2) Workwear: comprising of our Johnsons Workwear business only; and
The CODM's rationale for aggregating the Johnsons Hotel Linen, Johnsons Hotel,
Restaurant and Catering Linen, Johnsons Luxury Linen (which includes the
Empire business acquired in September 2024) and Johnsons Ireland operating
segments into a single reporting segment is set out below:
§ the gross margins of each operating segment are within a similar range,
with the long-term average margin expected to further align;
§ the nature of the customers, products and production processes of each
operating segment are very similar;
§ the nature of the regulatory environment is the same due to the similar
nature of products, processes and customers involved; and
§ distribution is via exactly the same method across each operating segment.
The CODM assesses the performance of the reporting segments based on a measure
of operating profit, both including and excluding the effects of non-recurring
items from the reporting segments, such as restructuring costs and impairments
when the impairment is the result of an isolated, non-recurring or
non-operating event. Interest income and expenditure are not included in the
result for each reporting segment that is reviewed by the CODM. Segment
results include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis, for example rental income received by
Johnson Group Properties PLC (the property holding company of the Group) is
credited back, where appropriate, to the paying company for the purpose of
segmental reporting. There have been no changes in the measurement methods
used compared to the prior year.
Other information provided to the CODM is measured in a manner consistent with
that in the financial statements. Segment assets exclude deferred income tax
assets, post-employment benefit assets, current income tax assets and cash and
cash equivalents, all of which are managed on a central basis. Segment
liabilities include lease liabilities but exclude bank borrowings, derivative
financial liabilities, post-employment benefit obligations, current income tax
liabilities and deferred income tax liabilities, all of which are managed on a
central basis. These balances are part of the reconciliation to total assets
and liabilities.
2 SEGMENT ANALYSIS (continued)
The reporting segment results for the half year ended 30 June 2025, together
with comparative figures, are as follows:
Half year to 30 June 2025 HORECA Workwear All Other Segments Total
£m £m £m £m
Revenue
Rendering of services 185.3 70.6 - 255.9
Sale of goods 0.1 1.5 - 1.6
Total revenue 185.4 72.1 - 257.5
Cost of sales (111.9) (43.9) - (155.8)
Distribution costs (32.0) (10.2) - (42.2)
Administrative costs (19.0) (7.6) (4.2) (30.8)
Operating profit / (loss) before amortisation of intangible assets 22.5 10.4 (4.2) 28.7
(excluding software amortisation) and exceptional items
Amortisation of intangible assets (excluding software amortisation) (4.0) - - (4.0)
Exceptional items (0.4) (0.3) (0.3) (1.0)
Operating profit / (loss) 18.1 10.1 (4.5) 23.7
Net finance cost (3.8)
Profit before taxation 19.9
Taxation charge (5.3)
Profit for the period attributable to equity holders 14.6
All of the above revenues are generated in the United Kingdom, with the
exception of £17.8 million generated within the Republic of Ireland.
HORECA Workwear All Other Segments Total
£m £m £m £m
Balance sheet information
Segment assets 404.3 162.2 2.1 568.6
Unallocated assets: Post-employment benefit 6.7
assets
0.8
Current income tax assets
11.5
Cash and cash equivalents
Total assets 587.6
Segment liabilities (100.2) (40.3) (9.0) (149.5)
Unallocated liabilities: Bank borrowings (110.5)
(0.6)
Derivative financial liabilities
(0.3)
Post-employment benefit obligations
(32.9)
Deferred income tax liabilities
Total liabilities (293.8)
HORECA Workwear All Other Segments Total
£m £m £m £m
Other information
Non-current asset additions
- Property, plant and equipment 21.2 3.3 - 24.5
- Right of use assets (including reassessment / modification) 0.1 2.3 - 2.4
- Textile rental items 19.7 11.6 - 31.3
- Customer contracts 3.1 - - 3.1
Depreciation and amortisation expense
- Property, plant and equipment 9.5 2.8 - 12.3
- Right of use assets 2.2 1.5 - 3.7
- Textile rental items 19.4 11.0 - 30.4
- Capitalised software 0.1 0.2 - 0.3
- Customer contracts and brands 4.0 - - 4.0
With the exception of non-current assets of £17.0 million which were located
in the Republic of Ireland, all non-current assets of the Group reside in the
Group's country of domicile, the United Kingdom.
2 SEGMENT ANALYSIS (continued)
HORECA Workwear All Other Segments Total
Half year to 30 June 2024
£m £m £m £m
Revenue
Rendering of services 172.9 69.5 - 242.4
Sale of goods - 1.7 - 1.7
Total revenue 172.9 71.2 - 244.1
Cost of sales (106.3) (42.7) - (149.0)
Distribution costs (29.8) (10.1) - (39.9)
Administrative costs (18.4) (8.2) (3.4) (30.0)
Operating profit / (loss) before amortisation of intangible assets (excluding 18.4 10.2 (3.4) 25.2
software amortisation) and exceptional items
Amortisation of intangible assets (excluding software amortisation) (2.6) (0.2) - (2.8)
Operating profit / (loss) 15.8 10.0 (3.4) 22.4
Net finance cost (3.7)
Profit before taxation 18.7
Taxation charge (4.9)
Profit for the period attributable to equity holders 13.8
All of the above revenues are generated in the United Kingdom, with the
exception of £16.9 million generated within the Republic of Ireland.
HORECA Workwear All Other Segments Total
£m £m £m £m
Balance sheet information
Segment assets 362.6 152.0 1.3 515.9
Unallocated assets: Post-employment benefit 3.5
assets
10.0
Cash and cash equivalents
Total assets 529.4
Segment liabilities (93.7) (36.6) (5.5) (135.8)
Unallocated liabilities: Bank borrowings (84.1)
(0.2)
Derivative financial liabilities
(0.3)
Post-employment benefit obligations
(0.8)
Current income tax liabilities
(19.5)
Deferred income tax liabilities
Total liabilities (240.7)
HORECA Workwear All Other Segments Total
£m £m £m £m
Other information
Non-current asset additions
- Property, plant and equipment 27.4 3.7 - 31.1
- Right of use assets (including reassessment / modification) 3.3 0.3 - 3.6
- Textile rental items 17.3 11.7 - 29.0
Depreciation and amortisation expense
- Property, plant and equipment 8.0 2.8 - 10.8
- Right of use assets 2.4 1.2 - 3.6
- Textile rental items 19.2 10.1 - 29.3
- Capitalised software 0.1 0.2 - 0.3
- Customer contracts and brands 2.6 0.2 - 2.8
With the exception of non-current assets of £11.6 million which were located
in the Republic of Ireland, all non-current assets of the Group reside in the
Group's country of domicile, the United Kingdom.
2 SEGMENT ANALYSIS (continued)
Year ended 31 December 2024 HORECA Workwear All Other Segments Total
£m £m £m £m
Revenue
Rendering of services 371.0 139.0 - 510.0
Sale of goods 0.2 3.2 - 3.4
Total revenue 371.2 142.2 - 513.4
Cost of Sales (222.6) (85.2) - (307.8)
Distribution costs (61.5) (20.2) - (81.7)
Administrative costs (37.7) (16.5) (7.4) (61.6)
Operating profit / (loss) before amortisation of intangible assets (excluding 49.4 20.3 (7.4) 62.3
software amortisation) and exceptional items
Amortisation of intangible assets (excluding software amortisation) (6.8) (0.4) - (7.2)
Exceptional items (0.4) - - (0.4)
Operating profit / (loss) 42.2 19.9 (7.4) 54.7
Net finance cost (7.5)
Profit before taxation 47.2
Taxation charge (11.7)
Profit for the period from continuing operations 35.5
Profit for the period from discontinued operations 0.1
Profit for the period attributable to equity holders 35.6
All of the above revenues are generated in the United Kingdom, with the
exception of £34.1 million generated within the Republic of Ireland.
HORECA Workwear All Other Segments Total
£m £m £m £m
Balance sheet information
Segment assets 390.7 154.4 1.9 547.0
Unallocated assets: 3.8
Post-employment benefit assets
11.5
Cash and cash equivalents
Total assets 562.3
Segment liabilities (102.2) (39.2) (3.7) (145.1)
Unallocated liabilities: Bank borrowings (80.1)
(0.3)
Derivative financial liabilities
(0.3)
Post-employment benefit obligations
(0.7)
Current income tax liabilities
(28.9)
Deferred income tax liabilities
Total liabilities (255.4)
HORECA Workwear All Other Segments Total
£m £m £m £m
Other information
Non-current asset additions
- Property, plant and equipment 37.9 10.1 - 48.0
- Right of use assets (including reassessment / modifications) 4.7 2.5 0.1 7.3
- Textile rental items 38.9 24.0 - 62.9
- Capitalised software 0.1 - - 0.1
- Customer contracts 6.0 - - 6.0
Depreciation, impairment and amortisation expense
- Property, plant and equipment 16.8 5.7 - 22.5
- Right of use assets 4.5 2.4 0.1 7.0
- Textile rental items 39.5 20.6 - 60.1
- Capitalised software 0.3 0.4 - 0.7
- Customer contracts 6.8 0.4 - 7.2
With the exception of non-current assets of £11.6 million which were located
in the Republic of Ireland, all non-current assets of the Group reside in the
Group's country of domicile, the United Kingdom.
3 EXCEPTIONAL ITEMS
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Costs in relation to business acquisition activity - - (1.4)
Reorganisation costs (0.7) - -
Costs in relation to Main Market listing (0.3) - -
Property related credits - - 1.0
Total exceptional items (1.0) - (0.4)
Current year exceptional items
Reorganisation costs
The project to relocate our Workwear operations from Lancaster to Manchester
resulted in the recognition of £0.3 million of reorganisation costs in the
first half of the year, with a further £0.9 million anticipated to be
incurred in the second half of the year.
In addition, the cost increases being experienced across UK businesses are
encouraging some of our smaller, independent competitors to review their
business strategy which, as a result, allowed us to add contracts with an
annualised revenue of some £4.0 million to our HORECA division during the
first half of 2025. Reorganisation costs of £0.4 million were incurred
during the period in relation to this.
Costs in relation to Main Market listing
Costs of £0.3 million were incurred during the period in relation to the
Company's ordinary shares being admitted to the Equity Shares (Commercial
Companies) Category of the Official List of the Financial Conduct Authority
and to trading on the Main Market of the London Stock Exchange, which occurred
on 1 August 2025. Further costs of £1.5 million, relating to the same, are
expected in the second half of the year.
Prior year exceptional items
Costs in relation to business acquisition activity
During the year, professional fees of £0.4 million were incurred relating to
the acquisition of Empire. A further £1.0 million was incurred in respect
of other business acquisition related activities.
Property related credits
During the year, £0.6 million of income was recognised in respect of a
non-returnable deposit received relating to the potential sale of a freehold
site in Exeter, which was destroyed by a fire in 2020. In addition, a £0.4
million provision relating to the same site was released as it was no longer
required.
4 NET FINANCE COST
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Interest payable on bank loans and overdrafts (2.4) (2.4) (4.8)
Amortisation of bank facility fees (0.2) (0.2) (0.4)
Finance costs on IFRS 16 lease liabilities (1.3) (1.1) (2.3)
Finance cost (3.9) (3.7) (7.5)
Notional interest income on post-employment benefit obligations 0.1 - -
Finance income 0.1 - -
Net Finance cost (3.8) (3.7) (7.5)
5 ALTERNATIVE PERFORMANCE MEASURES (APMs)
Adjusted profit before and after taxation (continuing) Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Profit before taxation (continuing) 19.9 18.7 47.2
Amortisation of intangible assets (excluding software amortisation) 4.0 2.8 7.2
Exceptional items 1.0 - 0.4
Adjusted profit before taxation (continuing) 24.9 21.5 54.8
Taxation thereon (6.0) (5.3) (12.7)
Adjusted profit after taxation (continuing) 18.9 16.2 42.1
Adjusted EBITDA Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Operating profit before amortisation of intangible assets (excluding 28.7 25.2 62.3
software amortisation) and exceptional items
Software amortisation 0.3 0.3 0.7
Property, plant and equipment depreciation 12.3 10.8 22.5
Right of use asset depreciation 3.7 3.6 7.0
Textile rental items depreciation 30.4 29.3 60.1
Adjusted EBITDA 75.4 69.2 152.6
6 DIVIDENDS
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
Dividend per share (pence)
2025 Interim dividend proposed 1.6 - -
2024 Interim dividend proposed and paid - 1.3 1.3
2024 Final dividend proposed and paid - - 2.7
1.6 1.3 4.0
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
Shareholders' funds committed (£m)
2025 Interim dividend proposed 6.3 - -
2024 Interim dividend proposed and paid - 5.4 5.4
2024 Final dividend proposed and paid - - 11.1
On 9 May 2025, a final dividend in respect of the year ended 31 December 2024
of 2.7 pence per share was paid to Shareholders, utilising £11.1 million of
Shareholders' funds.
The Directors are proposing an interim dividend in respect of the year ended
31 December 2025 of 1.6 pence per Ordinary share which, based on the number of
shares in issue as at the date of this report, will reduce Shareholders' funds
by £6.3 million. However, given the intention of the Directors to launch a
further share buyback programme, it is anticipated that the actual
distribution will be less than this amount. The dividend will be paid on 4
November 2025 to Shareholders on the register of members at the close of
business on 3 October 2025. The trustee of the EBT has waived the
entitlement to receive dividends on the Ordinary shares held by the trust.
In accordance with IAS 10, there is no payable recognised at 30 June 2025 in
respect of this proposed dividend.
7 TAXATION
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Current tax
UK corporation tax charge for the period 2.0 1.3 2.5
Adjustment in relation to previous years - - (0.3)
Current tax charge for the period 2.0 1.3 2.2
Deferred tax
Origination and reversal of temporary differences 3.3 3.6 10.1
Adjustment in relation to previous years - - (0.6)
Deferred tax charge for the period 3.3 3.6 9.5
Total charge for taxation included in the Consolidated Income Statement for 5.3 4.9 11.7
continuing operations
Taxation in relation to the amortisation of intangible assets (excluding
software amortisation) has reduced the charge for taxation on continuing
operations in the half year to 30 June 2025 by £0.5 million (June 2024: £0.4
million; December 2024: £1.1 million). Taxation in relation to exceptional
items has reduced the charge for taxation on continuing operations by £0.2
million (June 2024: £nil; December 2024: £0.1 million).
During the half year to 30 June 2025, a £0.6 million charge relating to
deferred taxation (June 2024: £0.2 million; December 2024: £1.0 million) has
been recognised in other comprehensive income. In addition, a £0.2 million
credit relating to deferred taxation (June 2024: £nil; December 2024: £0.2
million) and £0.1 million charge relating to current taxation (June 2024:
£nil; December 2024; £nil) has been recognised directly in reserves.
Reconciliation of effective tax rate
The main rate of corporation tax in the UK is 25.0%, whilst in the Republic of
Ireland it is 12.5%.
Taxation on non-exceptional items for the half year to 30 June 2025 is
calculated based on the estimated average annual effective tax rate of 24.1%
(June 2024: 24.7%; December 2024: 23.2%). The effective tax rate is impacted
by a number of factors, including expenses not deductible for taxation, non-UK
taxable profits and short-term timing differences, with first year capital
allowances in the period reflecting full expensing relief impacting upon the
estimated pattern of reversal of the Group's deferred tax assets and
liabilities.
8 EARNINGS PER SHARE
Half year to Half year to Year ended 31 December
30 June 30 June 2024
2025 2024 £m
£m £m
Profit for the period from continuing operations attributable to Shareholders 14.6 13.8 35.5
Amortisation of intangible assets from continuing operations (net of taxation) 3.5 2.4 6.1
Exceptional items from continuing operations (net of taxation) 0.8 - 0.5
Adjusted profit from continuing operations attributable to Shareholders 18.9 16.2 42.1
Profit from discontinued operations attributable to Shareholders - - 0.1
Total adjusted profit from all operations attributable to Shareholders 18.9 16.2 42.2
Number Number Number
of shares of shares of shares
Weighted average number of Ordinary shares 412,138,841 414,433,764 414,500,856
Potentially dilutive Ordinary shares 132,124 368,547 3,656,131
Diluted number of Ordinary shares 412,270,965 414,802,311 418,156,987
Pence Pence Pence
Basic earnings per share per share per share per share
From continuing operations 3.6p 3.3p 8.5p
From discontinued operations - - -
From total operations 3.6p 3.3p 8.5p
Adjustment for amortisation of intangibles assets (continuing) 0.8p 0.6p 1.5p
Adjustment for exceptional items (continuing) 0.2p - 0.2p
Adjusted basic earnings per share (continuing) 4.6p 3.9p 10.2p
Adjusted basic earnings per share (discontinued) - - -
Adjusted basic earnings per share from total operations 4.6p 3.9p 10.2p
Diluted earnings per share
From continuing operations 3.6p 3.3p 8.4p
From discontinued operations - - -
From total operations 3.6p 3.3p 8.4p
Adjustments for amortisation of intangibles assets (continuing) 0.8p 0.6p 1.5p
Adjustment for exceptional items (continuing) 0.2p - 0.2p
Adjusted diluted earnings per share (continuing) 4.6p 3.9p 10.1p
Adjusted basic earnings per share (discontinued) - - -
Adjusted diluted earnings per share from total operations 4.6p 3.9p 10.1p
Basic earnings per share is calculated using the weighted average number of
Ordinary shares in issue during the period, excluding those held by the
Employee Benefit Trust, based on the profit for the period attributable to
Shareholders.
Adjusted earnings per share figures are given to exclude the effects of
amortisation of intangible assets (excluding software amortisation) and
exceptional items, all net of taxation, and are considered to show the
underlying performance of the Group.
For diluted earnings per share, the weighted average number of Ordinary shares
in issue is adjusted to assume conversion of all potentially dilutive Ordinary
shares. The Company has potentially dilutive Ordinary shares arising from
share options granted to employees. Options are dilutive under the SAYE
scheme, where the exercise price together with the future IFRS 2 charge of the
option is less than the average market price of the Company's Ordinary shares
during the period. Options under the LTIP schemes, as defined by IFRS 2, are
contingently issuable shares and are therefore only included within the
calculation of diluted earnings per share if the performance conditions, as
set out in the Directors' Remuneration Report within the 2024 Annual Report
and Accounts, are satisfied at the end of the reporting period, irrespective
of whether this is the end of the vesting period or not.
Potentially dilutive Ordinary shares are dilutive at the point, from a
continuing operations level, when their conversion to Ordinary shares would
decrease earnings per share or increase loss per share. For the periods
ended 30 June 2025 and 30 June 2024, and the year ended 31 December 2024,
potentially dilutive Ordinary shares have been treated as dilutive, as their
inclusion in the diluted earnings per share calculation decreases the earnings
per share from continuing operations.
Subsequent to the balance sheet date, the Company purchased for cancellation a
further 9.1 million shares as part of its ongoing share buyback programme.
Had those shares been purchased at the balance sheet date, the weighted
average number of Ordinary shares disclosed above would not have changed
significantly. There were no other events occurring after the balance sheet
date that would have changed significantly the number of Ordinary shares or
potentially dilutive Ordinary shares outstanding at the balance sheet date if
those transactions had occurred before the end of the reporting period.
9 GOODWILL
12 As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Cost
Brought forward 155.0 145.8 145.8
Impact of foreign exchange translation 0.2 (0.2) (0.3)
Business combinations (note 16) - - 9.5
155.2 145.6 155.0
Impairment
Brought forward 1.4 1.4 1.4
Impairment - - -
1.4 1.4 1.4
Closing 153.8 144.2 153.6
In accordance with UK-adopted international accounting standards, goodwill is
not amortised but instead is tested annually for impairment, or upon the
existence of indicators of impairment per IAS 36, and carried at cost less
accumulated impairment losses.
Management have reviewed the indicators of impairment per IAS 36 and do not
believe that any have been triggered since 31 December 2024 and, as such, no
impairment review has been carried out as at 30 June 2025. In line with the
requirements of IAS 36, a full impairment review will be performed during the
second half of the year.
10 INTANGIBLE ASSETS
Capitalised software
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening net book value 0.6 1.2 1.2
Additions - - 0.1
Amortisation (0.3) (0.3) (0.7)
Closing net book value 0.3 0.9 0.6
Other intangible assets
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening net book value 28.4 17.9 17.9
Additions 3.1 - 6.0
Business combinations (note 16) - - 12.2
Foreign exchange differences 0.3 (0.2) (0.5)
Amortisation (4.0) (2.8) (7.2)
Closing net book value 27.8 14.9 28.4
Total 28.1 15.8 29.0
Other intangible assets comprise the fair value of customer contracts and
relationships and brands arising from business combinations, together with the
fair value of customer contracts acquired not as part of a business
combination.
11 PROPERTY, PLANT AND EQUIPMENT
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening net book value 160.0 134.5 134.5
Foreign exchange differences 0.4 (0.2) (0.5)
Additions 24.5 31.1 48.0
Business combinations (note 16) - - 0.9
Transfers from right of use assets - - 0.1
Depreciation (12.3) (10.8) (22.5)
Disposals - (0.1) (0.3)
Transfers to assets classified as held for sale - - (0.2)
Closing net book value 172.6 154.5 160.0
The transfer of assets from right of use assets represents the
reclassification of the cost of assets from right of use assets where the
lease was repaid in the period and the asset is now owned.
CAPITAL COMMITMENTS
The value of orders placed for future capital expenditure contracted but not
provided for in the financial statements is shown below:
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Software - 0.1 -
Property, plant and equipment 4.7 9.6 15.2
12 RIGHT OF USE ASSETS
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening net book value 43.0 40.0 40.0
Additions 1.0 1.9 1.6
Business combinations (note 16) - - 2.8
Reassessment/modifications of assets previously recognised 1.4 1.7 5.7
Transfers to property, plant and equipment - - (0.1)
Depreciation (3.7) (3.6) (7.0)
Closing net book value 41.7 40.0 43.0
13 TEXTILE RENTAL ITEMS
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening net book value 73.4 71.9 71.9
Foreign exchange differences - (0.1) (0.1)
Additions 31.3 29.0 62.9
Business combinations (note 16) - - 1.1
Depreciation (30.4) (29.3) (60.1)
Special charges (1.0) (1.2) (2.3)
Closing net book value 73.3 70.3 73.4
14 POST-EMPLOYMENT BENEFITS
The Group has applied the requirements of IAS 19, 'Employee Benefits' to its
employee pension schemes and post-employment healthcare benefits.
We have agreed with the Trustee of the defined benefit scheme to cease deficit
contributions until at least the results of the next triennial valuation,
which will be undertaken as at 30 September 2025. Accordingly, in the half
year to 30 June 2025, no deficit recovery payments were paid by the Group to
the defined benefit scheme (June 2024: £nil; December 2024: £nil).
Following discussions with the Group's appointed actuary, a re-measurement
gain of £2.8 million has been recognised in the half year to 30 June 2025.
The improvement in the position from 31 December 2024 is mainly driven by a
slight increase in the discount rate assumption, due to increases in corporate
bond yields, together with a reduction in the inflation rate assumption.
The post-employment benefit asset and associated deferred income tax liability
thereon are shown below:
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Post-employment benefit asset 6.4 3.2 3.5
Deferred income tax liability thereon (1.6) (0.8) (0.8)
4.8 2.4 2.7
The reconciliation of the opening gross post-employment benefit asset /
obligation to the closing gross post-employment benefit asset is shown below:
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Opening post-employment benefit asset / obligation 3.5 (0.3) (0.3)
Notional interest 0.1 - -
Re-measurement and experience gains 2.8 3.5 3.8
Closing post-employment benefit assets 6.4 3.2 3.5
Post-employment benefit assets / (obligations) are comprised of the following
balance sheet amounts:
As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Post-employment benefit assets (Non-current assets) 6.7 3.5 3.8
Post-employment benefit obligations (Non-current liabilities) (0.3) (0.3) (0.3)
6.4 3.2 3.5
15 SHARE CAPITAL
Issued share capital is as follows:
Half year to Half year to Year ended
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Share capital at the start of the period 41.5 41.4 41.4
New shares issued 0.2 - 0.1
Share buyback (1.2) - -
Share capital at the end of the period 40.5 41.4 41.5
In March 2025, the Group commenced a share buyback programme to repurchase up
to £30.0 million (excluding expenses) of its own shares. During the period
to 30 June 2025, 11,947,159 Ordinary shares with a total nominal value of
£1,194,716 were bought back, and immediately cancelled, by the Company for a
total consideration, including transaction costs, of £16.8 million. The
11,947,159 Ordinary shares repurchased as part of the share buyback programme
represents 2.9% of the Company's share capital in issue prior to commencement
of the share buyback programme.
16 BUSINESS COMBINATIONS
There have been no business combinations in the half year to 30 June 2025.
During 2024, the Group acquired 100% of the share capital of Empire Linen
Services Limited for a net consideration of £21.2 million (being a gross
consideration of £20.6 million on a debt free, cash free basis and subject to
a normalised level of working capital) plus associated fees. Deferred
consideration of £0.2 million, included in the aforementioned figures but not
paid to the seller at the time of the acquisition, was paid in the half year
to 30 June 2025. Full details of the acquisition are provided in the 2024
Annual Report and Accounts.
17 BORROWINGS
At 30 June 2025, borrowings were secured and drawn down under a committed
facility dated 8 August 2022. The facility comprised of a £120.0 million
rolling credit facility (including two net overdraft facilities for £5.0
million and £3.0 million) which runs to August 2027, and an option, subject
to bank consent, to increase the facility by up to an additional £15.0
million. This option was exercised on 14 July 2025, such that the available
facility is now £135.0 million.
Individual tranches are drawn down, in Sterling or Euros, for periods of up to
six months at SONIA or Euribor rates of interest, as applicable, prevailing at
the time of drawdown, plus the credit adjustment spread and the applicable
margin. The margin on the facility ranges between 1.45% and 2.45% and was
1.45% at 30 June 2025. Margin is determined on the achievement of leverage
ratios.
The secured bank loans are stated net of unamortised issue costs of £0.3
million (30 June 2024: £0.7 million; 31 December 2024: £0.5 million) of
which £0.2 million is included within current borrowings (30 June 2024: £0.4
million; 31 December 2024: £0.4 million) and £0.1 million is included within
non-current borrowings (30 June 2024: £0.3 million; 31 December 2024: £0.1
million). Details of the security are provided in note 21.
Amounts drawn under the revolving credit facility have been classified as
either current or non-current depending upon when the loan is expected to be
repaid.
18 ANALYSIS OF NET DEBT
Net debt is calculated as total borrowings, net of unamortised bank facility
fees, less cash and cash equivalents. Non-cash changes represent the effects
of the recognition and subsequent amortisation of fees relating to the bank
facility, changing maturity profiles, debt acquired as part of an acquisition
and the recognition of lease liabilities entered into during the period.
June 2025 At Cash Non-cash Foreign Exchange Adjustments At
1 January 2025 Flow Changes 30 June
2025
£m £m £m £m £m
Debt due within one year 0.4 - (0.2) - 0.2
Debt due after more than one year (71.2) (29.5) - (1.0) (101.7)
Lease liabilities (47.0) 3.4 (2.4) - (46.0)
Total debt and lease financing (117.8) (26.1) (2.6) (1.0) (147.5)
Cash and cash equivalents 2.2 0.1 - 0.2 2.5
Net debt (115.6) (26.0) (2.6) (0.8) (145.0)
June 2024 At Cash Non-cash Foreign Exchange Adjustments At
1 January 2024 Flow Changes 30 June
2024
£m £m £m £m £m
Debt due within one year 0.4 0.3 (0.3) - 0.4
Debt due after more than one year (63.0) (18.5) 0.1 0.6 (80.8)
Lease liabilities (43.2) 3.3 (3.7) - (43.6)
Total debt and lease financing (105.8) (14.9) (3.9) 0.6 (124.0)
Cash and cash equivalents 0.9 5.4 - - 6.3
Net debt (104.9) (9.5) (3.9) 0.6 (117.7)
At Cash Non-cash Foreign Exchange Adjustments At 31 December
December 2024 1 January 2024 Flow Changes 2024
£m £m £m £m £m
Debt due within one year 0.4 0.3 (0.3) - 0.4
Debt due after more than one year (63.0) (9.5) (0.1) 1.4 (71.2)
Lease liabilities (43.2) 6.3 (10.1) - (47.0)
Total debt and lease financing (105.8) (2.9) (10.5) 1.4 (117.8)
Cash and cash equivalents 0.9 1.6 - (0.3) 2.2
Net debt (104.9) (1.3) (10.5) 1.1 (115.6)
As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Net debt (145.0) (117.7) (115.6)
Add back: IFRS 16 lease liabilities 46.0 43.6 47.0
Net debt excluding IFRS 16 lease liabilities (99.0) (74.1) (68.6)
The cash and cash equivalents figures are comprised of the following balance
sheet amounts:
As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Cash (Current assets) 11.5 10.0 11.5
Overdraft (Borrowings, Current liabilities) (9.0) (3.7) (9.3)
2.5 6.3 2.2
18 ANALYSIS OF NET DEBT (continued)
Lease liabilities are comprised of the following balance sheet amounts:
As at As at As at
30 June 30 June 31 December 2024
2025 2024
£m £m £m
Amounts due within one year (Lease liabilities, Current liabilities) (6.8) (5.8) (6.2)
Amounts due after more than one year (Lease liabilities, Non-current (39.2) (37.8) (40.8)
liabilities)
(46.0) (43.6) (47.0)
19 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Half year to Half year to Year ended
30 June 30 June 2024 31 December
2025 2024
£m £m £m
Increase in cash in the period 0.1 5.4 1.6
Increase in debt and lease financing (26.1) (14.9) (2.9)
Change in net debt resulting from cash flows (26.0) (9.5) (1.3)
Debt acquired through business combinations - - (2.8)
Lease liabilities recognised during the period (2.4) (3.7) (7.3)
Non-cash movement in unamortised bank facility fees (0.2) (0.2) (0.4)
Foreign exchange adjustments (0.8) 0.6 1.1
Movement in net debt during the period (29.4) (12.8) (10.7)
Opening net debt (115.6) (104.9) (104.9)
Closing net debt (145.0) (117.7) (115.6)
20 RELATED PARTY TRANSACTIONS
Transactions during the period between the Company and its subsidiaries, which
are related parties, have been conducted on an arm's length basis and
eliminated on consolidation. Full details of the Group's related party
relationships, transactions and balances are given in the Group's Annual
Report and Accounts for the year ended 31 December 2024. There have been no
material changes in these relationships in the half year to 30 June 2025, or
up to the date of these condensed consolidated interim financial statements.
Transactions with related parties have not had, and are not expected to have,
a material effect on the financial performance or position of the Group.
21 CONTINGENT LIABILITIES
The Group operates from a number of sites across the UK and the Republic of
Ireland. Some of the sites have operated as laundry sites for many years and
historic environmental liabilities may exist. Such liabilities are not
expected to give rise to any significant loss.
The Group has granted its Bankers and Trustee of the Pension Scheme (the
'Trustee') security over the assets of the Group. The priority of security
is as follows:
§ first ranking security for £28.0 million to the Trustee ranking pari passu
with up to £155.0 million of bank liabilities; and
§ second ranking security for the balance of any remaining liabilities to the
Trustee ranking pari passu with any remaining bank liabilities.
During the period of ownership of the Facilities Management division, the
Company had given guarantees over the performance of certain contracts entered
into by the division. As part of the disposal of the division, the purchaser
agreed to pursue the release or transfer of obligations under the guarantees
and this remains in process. The sale and purchase agreement contains an
indemnity from the purchaser to cover any loss in the event a claim is made
prior to release. In the period until release, the purchaser is to make a
payment to the Company of £0.2 million per annum, reduced pro rata as
guarantees are released. Such liabilities are not expected to give rise to
any significant loss.
22 EVENTS AFTER THE REPORTING PERIOD
On 1 August 2025, the Company's Ordinary shares were admitted to the Equity
Shares (Commercial Companies) Category of the Official List of the Financial
Conduct Authority and to trading on the Main Market of the London Stock
Exchange ('Admission'). Simultaneously, the Ordinary shares were cancelled
from trading on AIM. The Company did not raise any funds or offer any new
Ordinary shares in connection with Admission and Admission was effected
through an introduction of the Company's existing Ordinary shares. Following
Admission, the Ordinary shares continue to be registered with their existing
ISIN of GB0004762810 and the TIDM will continue to be JSG.
Subsequent to the balance sheet date, the Company purchased for cancellation a
further 9.1 million shares as part of its ongoing share buyback programme.
The share buyback programme was completed on 28 August 2025.
There have been no other events that require disclosure in accordance with
IAS10, 'Events after the balance sheet date'.
23 PRINCIPAL RISKS AND UNCERTAINTIES
Approach to Risk Management
The Board has overall accountability for ensuring that risk is effectively
managed across the Group and, on behalf of the Board, the Audit Committee
coordinates and reviews the effectiveness of the Group's risk management
process.
Risks are reviewed by all of our businesses on an ongoing basis and are
measured against a defined set of likelihood and impact criteria. This is
captured in consistent reporting formats enabling the Audit Committee to
review and consolidate risk information and summarise the principal risks and
uncertainties facing the Group. Wherever possible, action is taken to
mitigate, to an acceptable level, the potential impact of identified principal
risks and uncertainties.
The Board formally reviews the most significant risks facing the Group at its
March and August meetings, or more frequently should new matters arise.
Throughout 2025 to date, the overall risk environment remained largely
unchanged from that reported within the Group's 2024 Annual Report.
Risk Appetite
The Board interprets appetite for risk as the level of risk that the Group is
willing to take in order to meet its strategic goals. The Board communicates
its approach to, and appetite for, risk to the business through the strategy
planning process and the internal risk governance and control frameworks. In
determining its risk appetite, the Board recognises that a prudent and robust
approach to risk assessment and mitigation must be carefully balanced with a
degree of flexibility so that the entrepreneurial spirit which has greatly
contributed to the success of the Group is not inhibited. Both the Board and
the Audit Committee remain satisfied that the Group's internal risk control
framework continues to provide the necessary element of flexibility without
compromising the integrity of risk management and internal control systems.
Emerging Risks
The Board has established processes for identifying emerging risks, and
horizon scanning for risks that may arise over the medium to long term.
Emerging and potential changes to the Group's risk profile are identified
through the Group's risk governance frameworks and processes, and through
direct feedback from management, including changing operating conditions,
market and consumer trends.
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group are summarised
below:
§ Economic and Political Conditions § Pandemic or Other National Crisis
§ Cost Inflation § Health & Safety
§ Failure of Strategy § Compliance and Fraud
§ Recruitment, Retention and Motivation of Employees § Insufficient Processing Capacity
§ Loss of a Processing Facility § Customer Sales and Retention
§ Competition and Disruption § Climate Change and Energy Costs
§ Information Systems and Technology
Full details of the above risks, together with details on how the Board takes
action to mitigate each risk, were provided in our 2024 Annual Report. These
risks and uncertainties do not comprise all of the risks that the Group may
face and are not necessarily listed in any order of priority. Additional
risks and uncertainties not presently known to the Board, or deemed to be less
material, may also have an adverse effect on the Group.
In accordance with the provisions of the UK Corporate Governance Code, the
Board has taken into consideration the principal risks and uncertainties in
the context of determining whether to adopt the going concern basis of
preparation and when assessing the future prospects of the Group.
24 PUBLISHED FINANCIAL STATEMENTS
There is no regulatory requirement to send out half-yearly reports to all
Shareholders or to advertise the content in a national newspaper. In order
to reduce costs, the Company has taken advantage of this reporting regime and
no longer publishes half-yearly reports for individual circulation to
Shareholders. Information that would normally be included in a half-yearly
report is made available on the Company's website at www.jsg.com
(http://www.jsg.com) .
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