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Johnson Service
(LSE:JSG)
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Rating:62Neutral
Price Target:
154.00 p
â–²(5.34% Upside)
Action:Reiterated
Date:09/15/26
The score is supported most by improving fundamentals and a positive earnings-call outlook (margin target maintained, shareholder returns via dividends/buybacks). It is held back primarily by weak technical momentum (price below key moving averages, negative MACD) and financial-risk flags from rising leverage and volatile free cash flow.
Positive Factors
Multi-year revenue and profit recovery
The substantial multi-year increase in revenue alongside a return to meaningful profitability indicates that the business has rebuilt operating scale and earnings capacity. This provides a stronger foundation for reinvestment, debt service and shareholder distributions over the next several quarters.
Negative Factors
Persistent HORECA revenue pressure
HORECA is facing both volume weakness and cautious customer decision-making, with pricing increases unable to offset the decline in activity. If softer trading persists, this division could remain a drag on group growth and limit the benefits of performance elsewhere.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue and profit recovery
The substantial multi-year increase in revenue alongside a return to meaningful profitability indicates that the business has rebuilt operating scale and earnings capacity. This provides a stronger foundation for reinvestment, debt service and shareholder distributions over the next several quarters.
Read all positive factors
Johnson Service (JSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£501.33M
Dividend Yield3.49%
Average Volume (3M)2.29M
Price to Earnings (P/E)14.8
Beta (1Y)1.06
Revenue Growth1.73%
EPS Growth9.66%
CountryUK
Employees6,696
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding349,853,850
10 Day Avg. Volume2,602,682
30 Day Avg. Volume2,292,187
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)1.97
Price to Sales (P/S)1.01
P/FCF Ratio14.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£181.67Price Target Upside24.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.14
Revenue Forecast (FY)£535.20M
Johnson Service Business Overview & Revenue Model
Company Description
Johnson Service Group PLC is a UK-based company that, through its various subsidiaries, specializes in providing textile rental and associated services. The company's operations are divided into two main segments: Workwear, and Hotel, Restaurants ...
How the Company Makes Money
JSG makes money primarily by providing technology staffing and related workforce solutions. Its core revenue stream is staffing services, where JSG sources, recruits, and places IT professionals with client organizations; revenue is earned through...
Johnson Service Earnings Call Summary
Earnings Call Date:Sep 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. The group delivered modest revenue growth, stronger operating profit, margin expansion, EPS growth, a higher dividend and continued progress on share buybacks. Workwear performed well, HORECA remained profitable despite lower volumes, and management maintained its adjusted operating margin target of at least 14% for 2026. The main challenges were HORECA's softer trading environment, labor cost inflation, higher interest expense and uncertainty around 2027 energy exposure.Positive Updates
Resilient Group Revenue and Profit Growth
First-half group revenue increased by 0.2% to GBP 258 million, while adjusted operating profit increased by 3.8% to GBP 29.8 million. The group stated that customer price increases and contract acquisitions more than offset lower HORECA volumes.
Negative Updates
Decline in Organic Group Revenue
Organic group revenue declined by 0.7%, despite reported group revenue increasing by 0.2%.
Read all updates
Q2-2026 Updates
Positive
Negative
Resilient Group Revenue and Profit Growth
First-half group revenue increased by 0.2% to GBP 258 million, while adjusted operating profit increased by 3.8% to GBP 29.8 million. The group stated that customer price increases and contract acquisitions more than offset lower HORECA volumes.
Read all positive updates
Company Guidance
The group remains on track to deliver another year of progress and achieve its targeted adjusted operating margin of at least 14% in 2026; labor costs as a percentage of revenue are expected to moderate during the second half and trend towards the 2025 level, around that 46% mark, remaining broadly stable on a full year basis; energy costs are anticipated to show a further modest reduction in the second half of the year as a percentage of revenue; working capital is expected to be broadly in line with the 2025 levels on a full year basis; the majority of the current buyback program is expected to be completed by the end of this year, with leverage then expected to be maintained at the lower end of our target range at the year end; on a full year basis, the group expects to maintain its commitment on dividends with a dividend cover of 2.5 times; and in HORECA, the business is being managed under the assumption that this softer trading persists throughout the remainder of the year.Johnson Service Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.90M | 535.40M | 513.40M | 465.30M | 385.70M | 271.40M |
| Gross Profit | 205.60M | 203.90M | 513.40M | 167.10M | 135.00M | 81.10M |
| EBITDA | 113.20M | 167.80M | 152.20M | 129.40M | 104.90M | 74.50M |
| Net Income | 37.40M | 37.10M | 35.60M | 27.30M | 29.00M | 6.60M |
Balance Sheet | ||||||
| Total Assets | 605.90M | 579.50M | 562.30M | 509.00M | 433.50M | 412.90M |
| Cash, Cash Equivalents and Short-Term Investments | 6.40M | 11.00M | 11.50M | 9.60M | 6.10M | 5.20M |
| Total Debt | 195.00M | 170.20M | 127.10M | 114.50M | 54.10M | 65.30M |
| Total Liabilities | 336.60M | 304.40M | 255.40M | 229.90M | 148.90M | 140.50M |
| Stockholders Equity | 269.30M | 275.10M | 306.90M | 279.10M | 284.60M | 272.40M |
Cash Flow | ||||||
| Free Cash Flow | 40.80M | 38.30M | 91.20M | 28.40M | 18.30M | -21.60M |
| Operating Cash Flow | 137.60M | 139.90M | 141.80M | 121.40M | 94.50M | 44.60M |
| Investing Cash Flow | -99.60M | -103.00M | -130.70M | -119.20M | -71.60M | -66.90M |
| Financing Cash Flow | -44.00M | -37.50M | -9.50M | -2.10M | -17.70M | 11.30M |
Johnson Service Technical Analysis
Positive
146.20
Price Trends
138.69
Positive
145.20
Negative
139.83
Positive
Market Momentum
1.85
Negative
57.95
Neutral
61.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JSG, the sentiment is Positive. The current price of 146.2 is above the 20-day moving average (MA) of 139.91, above the 50-day MA of 138.69, and above the 200-day MA of 139.83, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JSG.
Johnson Service Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £2.75B | 18.70 | 17.55% | 1.62% | 1.20% | 221.80% | |
67 Neutral | £2.67B | 32.60 | 15.86% | 2.14% | 10.55% | -19.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £501.33M | 14.85 | 13.74% | 3.49% | 1.73% | 9.66% | |
62 Neutral | £8.62B | 24.31 | 5.82% | 2.74% | -0.18% | 39.04% | |
47 Neutral | £343.16M | -1.72 | -677.10% | 5.94% | -16.13% | -1315.87% | |
44 Neutral | £1.79B | 279.34 | -2.52% | 0.54% | 0.18% | -55.56% |
* Industrials Sector Average
GB:JSG
Johnson Service
143.30
9.34
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Johnson Service Corporate Events
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Latest Tranche of Buyback Shares
Positive
Oct 20, 2026
Johnson Service Group PLC has continued to execute its previously announced share buyback programme, purchasing a total of nearly 1.9 million ordinary shares between 12 and 16 October 2026 on the London Stock Exchange. The shares, acquired at weig...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After Fresh Buyback Round
Positive
Oct 13, 2026
Johnson Service Group has continued its previously announced share buyback programme, repurchasing a total of around 2.16 million ordinary shares between 5 and 9 October 2026 on the London Stock Exchange. The purchases were made at weighted averag...
Business Operations and StrategyStock Buyback
Johnson Service Continues Share Buyback, Plans Cancellation of Repurchased Stock
Positive
Oct 6, 2026
Johnson Service Group PLC has repurchased a total of ordinary shares between 28 September and 2 October 2026 as part of its ongoing share buyback programme executed through Investec Bank. The company intends to cancel these shares, effectively red...
Regulatory Filings and Compliance
Johnson Service Group Confirms Total Voting Rights at End of September
Neutral
Oct 1, 2026
Johnson Service Group has confirmed that, as of 30 September 2026, its issued share capital comprises 357,198,681 ordinary shares of 10 pence each, with no shares held in treasury. This figure represents the total number of voting rights in the co...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Continues Share Buyback and Plans Cancellation of Repurchased Shares
Positive
Sep 29, 2026
Johnson Service Group PLC has continued its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 21 and 25 September 2026. The purchases, executed via Investec Bank plc at weighted average...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Advances Share Buyback and Plans Share Cancellation
Positive
Sep 22, 2026
Johnson Service Group PLC has continued its previously announced share buyback programme, purchasing a series of its own ordinary shares on the London Stock Exchange between 14 and 18 September 2026. The transactions were executed via Investec Ban...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Continues Share Buyback and Plans Cancellation
Positive
Sep 15, 2026
Johnson Service Group PLC has continued its previously announced share buyback programme, purchasing a series of ordinary shares between 7 and 11 September 2026 on the London Stock Exchange through Investec Bank plc. The company has stated that al...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Cancels Shares After September Buybacks
Positive
Sep 8, 2026
Johnson Service Group PLC has repurchased a series of its own ordinary shares on the London Stock Exchange between 1 and 4 September 2026 under a previously announced buyback programme. The purchases, executed via Investec Bank, were made at avera...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Johnson Service lifts margins and investor returns despite softer HORECA trading
Positive
Sep 8, 2026
Johnson Service Group reported first-half 2026 revenue broadly flat at £258.0 million, but grew adjusted operating profit by 3.8% to £29.8 million, lifting the margin to 11.6% despite macroeconomic headwinds. Workwear revenue rose 2.6% w...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Continues Share Buyback, Plans Cancellation of Repurchased Stock
Positive
Sep 2, 2026
Johnson Service Group PLC has continued executing its previously announced share buyback programme, purchasing tranches of its ordinary shares on the London Stock Exchange between 24 and 28 August 2026 through Investec Bank plc. The trades were ex...
Regulatory Filings and Compliance
Johnson Service Confirms Share Capital and Voting Rights Structure
Neutral
Sep 1, 2026
Johnson Service Group PLC has reported that, as of the close of business on 28 August 2026, its issued share capital comprises 361,764,546 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury....
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After August Buybacks
Positive
Aug 25, 2026
Johnson Service Group PLC has continued executing its previously announced share buyback programme, repurchasing tranches of its 10 pence ordinary shares on the London Stock Exchange between 17 and 21 August 2026. The purchases were conducted via ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Continues Share Buyback, Cancels Nearly One Million Shares
Positive
Aug 18, 2026
Johnson Service Group PLC has continued to actively manage its capital structure through the execution of its previously announced share buyback programme, using Investec Bank plc as broker on the London Stock Exchange. The company’s focus o...
Business Operations and StrategyStock Buyback
Johnson Service Group Cancels Shares After Ongoing Buyback Programme
Positive
Aug 11, 2026
Johnson Service Group PLC has repurchased a series of its ordinary shares as part of a share buyback programme conducted through Investec Bank. The purchases, made between 3 August and 7 August 2026 on the London Stock Exchange, were executed at w...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Johnson Service Group Continues Share Buyback and Plans Cancellation of Repurchased Stock
Positive
Aug 4, 2026
Johnson Service Group has continued its share buyback programme, repurchasing a series of ordinary shares between 27 July and 31 July 2026 through Investec Bank on the London Stock Exchange. Across these transactions, the company acquired several ...
Regulatory Filings and Compliance
Johnson Service Group Clarifies Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
Johnson Service Group has confirmed that, as of 31 July 2026, its issued share capital comprises 364,860,476 ordinary shares of 10 pence each, with no shares held in treasury and each share carrying one vote. This disclosure clarifies the company&...
Regulatory Filings and Compliance
Johnson Service Group Sets Total Voting Rights at 364.9 Million Shares
Neutral
Aug 3, 2026
Johnson Service Group PLC has confirmed that, as of 31 July 2026, its issued share capital comprises 364,860,476 ordinary shares of 10 pence each, with every share carrying one voting right and no shares held in treasury. This disclosure sets the ...
Business Operations and StrategyStock Buyback
Johnson Service Group Advances Share Buyback and Cancels Repurchased Stock
Positive
Jul 28, 2026
Johnson Service Group has continued executing its previously announced share buyback programme, repurchasing ordinary shares with a nominal value of 10 pence each on the London Stock Exchange between 20 and 24 July 2026. The purchases, conducted v...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.