Johnson Service Group plc
Johnson Service Group PLC is a UK and Republic of Ireland dedicated textile services provider, operating through two segments: HORECA (Hotel, Restaurant and Catering linen, including Johnsons Hotel Linen, Johnsons HRC Linen, Johnsons Luxury Linen and Johnsons Ireland) and Workwear (workwear rental, protective wear and laundry services to UK businesses). The Group completed its transition from AIM to the Main Market of the London Stock Exchange on 1 August 2025 and, following the 2024 disposal of its Facilities Management division (shown as discontinued operations), now derives revenue from a single focused textile services business.
10 annual reports read, FY2016 to FY2025
Open a year to see what its report said. Every line in it carries the page it was read from.
Sources: Companies House (10)
FY2026Next report expected 12 Mar 2027
- Open the reportJSONComing soonSixty seconds on the FY2025 report
Johnson Service Group, which rents and launders linen for hotels and restaurants and workwear for businesses in the UK and Ireland, grew revenue by +4.3% to £535.4m. Profit before tax rose to £50.8m from £47.2m. Price increases, new contracts and productivity gains helped offset higher wage and employer tax costs, and energy took a smaller share of revenue. Profit was reduced by £6.0m of one-off costs, mainly from moving workwear operations from Lancaster to Manchester and from switching its share listing from AIM to London's Main Market. Cash at the year end was £11.0m, while borrowings rose to £123.4m after the company spent £54.7m buying back its own shares. Very little was raised from issuing new shares. The dividend for the year was raised to 4.8p per share. The board expects another year of growth in 2026 and says it remains on track for its profit margin target. The auditor gave a clean opinion and the directors raised no doubt about the company's ability to keep trading. Risks the report rates as high include cost inflation, the economy, competition and cyber attacks.
From the reportevery line sits on the page it namesWhat drove revenuePrice increases to offset cost inflation
Price increases, together with productivity improvements, helped offset cost inflation; HORECA organic revenue growth of 1.0% and Workwear organic growth of 2.4% over 2024
page 21AndNew contract wins from competitor churn
Cost increases across UK businesses encouraged smaller independent competitors to review strategy, allowing JSG to add contracts with annualised revenue of some £4.9 million to HORECA during 2025
page 22What moved the marginheadwindLabour cost inflation (National Living Wage, National Insurance, Irish minimum wage/PRSI)
Labour as a % of revenue increased 140bps to 46.0% (2024: 44.6%; 2019: 43.0%), reflecting NI and National Living Wage increases in the UK (annualised employer NI impact ~£6m) and minimum wage/PRSI increases in Ireland
page 21AndtailwindEnergy cost management
Energy costs reduced to 7.4% of revenue (2024: 8.8%, still above 2019's 6.2%) via proactive forward fixing — ~90% of 2026 anticipated electricity and ~85% of power needs fixed as at Feb 2026
page 21What management saidThe Board expects to deliver another year of growth across the Group and remains on track towards achieving its targeted adjusted operating margin of at least 14.0% in 2026.
page 19After the year endNo IAS 10 reportable events after the reporting period were identified (note 39)
page 176The dividendProgressive dividend policy. FY2025 interim dividend 1.6p paid 4 November 2025; proposed final dividend 3.2p (2024: 2.7p), taking total to 4.8p per share (2024: 4.0p), a 20.0% increase; dividend cover 2.5x based on adjusted EPS (2024: 2.5x); final dividend subject to shareholder approval, payable 15 May 2026 to shareholders on the register at 17 April 2026, committing £12.1m (total year dividend commitment £18.4m, 2024: £16.5m)
page 12Going concern and the auditAuditor's opinion unmodified (unqualified); Grant Thornton UK LLP (Jonathan Maile, Senior Statutory Auditor; appointed for FY2021-FY2025, 5-year uninterrupted tenure). Group materiality £2.58m (~5% of PBT). Key audit matters: (1) revenue cycle includes fraudulent transactions (new in 2025) — no material misstatement identified; (2) customer rebate arrangements — no material misstatement identified. Directors adopted the going concern basis, having reviewed cash flow forecasts and stress tests to 30 June 2027 (covenant leverage not more than 3x adjusted EBITDA to net debt including IFRS 16; interest cover minimum 4x; leverage at 31 Dec 2025 was 0.95x).
page 119The risks it names first- Economic and political conditions (High, static trend): susceptibility to adverse changes in economic conditions, employment levels, consumer spending (particularly affecting HORECA), and geopolitical tensions (Middle East, Russia-Ukraine, potential US tariffs) affecting input price/availabilityp.53
- Cost inflation (High, static trend): rising labour costs and associated taxation increases, plus supply costs such as energyp.53
- Failure of strategy (High, static trend): failure to identify or successfully integrate acquisition targets could impair growth plans and investor confidencep.54
- Recruitment, retention and motivation of employees (High, static trend): risk of disruption from loss of key team members, particularly in critical senior management positions amid current economic conditionsp.54
Read from C000707-AR-2025-ch.
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