Johnson Service Group
JSG · Main Market · Industrial Goods and Services · mcap £486m · 137.9p
JSG rents and launders table linen and uniforms for hotels and restaurants (HORECA) and rents workwear to businesses. It runs its own laundries and delivery network across the UK.
The case for
- Adjusted operating profit rose from £41m in 2023 to £62m in 2024, and margin from 10.9% to 12.1%. 5 Mar 2024 4 Mar 2025
- Management repeatedly reaffirmed a 14% margin target for 2026, and earlier guidance on profit was met in line with expectations. 4 Mar 2025 1 May 2025 10 Jul 2025
- Cash returns to shareholders reached £90m since September 2022, with leverage kept under 1x EBITDA. 5 Mar 2025 8 Jan 2026
- Energy pricing was expected to add £3m, £7m and £9m to profit in 2024–2026. 1 May 2024
The case against
- Organic growth slowed from 16% in 2023 to 1.4% in H1 2025. 5 Mar 2024 10 Jul 2025
- Bank debt rose to £99m by mid-2025 from £62m at end 2023, after buybacks, an acquisition and the Crawley build. 16 Jan 2024 10 Jul 2025
- Workwear is flat, and customer retention was expected to recover to 95%. 1 May 2025 10 Jul 2025
- The Crawley site cost £3.7m of profit in 2024 and was not expected to break even until 2026. 1 May 2024
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.