**Summary of Johnson Service Group PLC Interim Results for the Six Months Ended 30 June 2025**
**Financial Performance**
**Revenue Growth** Revenue increased by 5.5% to £257.5 million compared to H1 2024, with organic revenue growth of 1.4%.
**Profitability** Adjusted operating profit rose by 13.9% to £28.7 million, with an adjusted operating profit margin of 11.1%, up 80 basis points. Adjusted EBITDA margin improved to 29.3%.
**Earnings** Adjusted diluted earnings per share increased by 17.9% to 4.6p.
**Dividend** Interim dividend increased by 23.1% to 1.6p per share.
**Operational Highlights**
**HORECA Division** Revenue grew by 7.2% to £185.4 million, with adjusted operating profit up 22.3% to £22.5 million, improving the margin to 12.1%.
**Workwear Division** Revenue increased slightly by 1.3% to £72.1 million, with adjusted operating profit up 2.0% to £10.4 million, maintaining a margin of 14.4%.
**Customer Retention** Workwear customer retention improved to 94% in June 2025 from 93% in December 2024.
**Cost Management** Energy costs as a percentage of revenue continued to reduce, and productivity improvements helped offset cost inflation.
**Strategic Initiatives**
**Share Buyback** Completed a £30.0 million share buyback, with a further £25.0 million buyback planned.
**Facility Expansion** Increased revolving credit facility by £15.0 million to £135.0 million, expiring in August 2027.
**Main Market Listing** Successfully admitted to trading on the Main Market of the London Stock Exchange on 1 August 2025.
**Sustainability** Published the fourth Sustainability Report in June 2025, highlighting progress in reducing single-use plastics and achieving a silver medal from EcoVadis.
**Outlook**
**Margin Improvement** On track to achieve an adjusted operating profit margin of at least 14.0% by 2026.
**Full-Year Expectations** Confident in reporting full-year adjusted operating profit in line with market expectations.
**Investment and Growth** Strong balance sheet and cash generation enable ongoing investment and potential acquisition opportunities.
**CEO Commentary**
Peter Egan, CEO, emphasized continued progress in the first half, operational excellence, and margin improvement. He highlighted the significance of the Main Market listing and the commitment to shareholder value through share buybacks and disciplined capital allocation.
**Financial Review**
**Cash Flow** Free cash flow was £25.0 million, with net debt at £145.0 million, including IFRS 16 lease liabilities.
**Capital Structure** Maintained a strong balance sheet with significant headroom for investment and acquisitions.
**Operational Review**
**HORECA Division** Focus on growth in luxury linen and expansion of processing capacity.
**Workwear Division** Improved customer retention and new business sales, with ongoing investment in operational resilience and sustainability.
**Sustainability**
Continued focus on reducing single-use plastics and achieving sustainability targets.
**Conclusion**
Johnson Service Group PLC demonstrated robust financial and operational performance in H1 2025, with strategic initiatives positioning the company for continued growth and margin improvement. The company remains confident in its full-year outlook and long-term strategic goals.
| Metric | H1 2025 | H1 2024 | Change | FY 2024 |
|---|---|---|---|---|
| Revenue | £257.5m | £244.1m | +5.5% | £513.4m |
| Adjusted Operating Profit | £28.7m | £25.2m | td>+13.9%£62.3m | |
| Adjusted Operating Profit Margin | 11.1% | 10.3% | +80bps | 12.1% |
| Adjusted EBITDA Margin | 29.3% | 28.3% | +100bps | 29.7% |
| Adjusted Profit Before Taxation | £24.9m | £21.5m | +15.8% | £54.8m |
| Adjusted Diluted Earnings Per Share | 4.6p | 3.9p | +17.9% | 10.1p |
| Net Debt (excluding IFRS 16 lease liabilities) | £99.0m | £74.1m | +33.6% | £68.6m |