Johnson Service shares plunge despite in-line results
By Benjamin Chiou
Date: Tuesday 03 Mar 2026
(Sharecast News) - Johnson Service Group's share price dropped sharply on Tuesday despite the workwear, hospitality linen and laundry company meeting expectations with its full-year results, with profits rising at a double-digit rate.
The company said it expects "another year of growth" in 2026, but did not give any detailed guidance, other than it remains on track to hit its 14.0% adjusted operating profit margin guidance this year. The stock was down 8.8% at 131.4p by 1001 GMT.
Adjusted results from JSG showed a 4.3% increase in annual revenue to £535.4m, with organic growth of 1.4% following a 1.0% increase in the larger hotel, restaurant and catering (HORECA) arm and 2.4% growth in workwear.
Headline revenues in HORECA increased to £389.8m from £371.2m previously, while workwear revenues rose to £145.6m from £142.2m.
Adjusted operating profit jumped 16.4% year-on-year to £72.5m, helped by an improvement in margins to 13.5% to 12.1%, which JSG said were both in line with market expectations.
The company proposed a final dividend of 3.2p per share, taking the full-year dividend to 4.8p, up 20% year-on-year, representing dividend cover of 2.5x.
Following the £55m of share buybacks announced in 2025, that were completed in January, the firm said it continues to "actively review its options on further share buybacks throughout 2026, taking into account the cash generation profile of the group and the level of headroom available under its committed bank facilities".
"Entering 2026, the regional and sector variations in HORECA volumes experienced in 2025 continued," said chief executive Peter Egan.
"Notwithstanding this, and recognising normal seasonality driving stronger trading over the summer months, we expect to deliver another year of growth across the group and we remain on track towards achieving our target of an improved adjusted operating margin for 2026 of at least 14.0%"
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