Johnson Service Group Plc

Johnson Service Group reported group revenue up 0.2% to GBP258 million in H1 2026, with organic revenue down 0.7%, as adjusted operating profit rose 3.8% to GBP29.8 million and operating margin expanded 50 basis points to 11.6%, according to CFO Ryan Govender on the company's earnings call. EPS rose 8.7% to 5p. CEO Peter Egan said the GBP55 million share buyback is progressing well and circa 50% executed, bringing total returns to shareholders since 2022 to GBP118.5 million, with the majority of the current program expected to complete by year-end. Within the group, Workwear revenue rose 2.6% to GBP74 million, entirely organic, with adjusted operating profit up almost 6% to GBP11 million and operating margin up 50 basis points to 14.9%, while HORECA revenue was GBP184 million, down 0.8% and down 2% organically, though its adjusted operating profit rose 4% to GBP23.4 million and operating margin improved 60 basis points to 12.7%. Govender said labour rose to 47.2% of revenue, up 80 basis points, reflecting a 4.1% UK national living wage increase, a 4.8% Irish national minimum wage increase, and higher UK national insurance contributions, and he expects labour costs to moderate in H2 toward the 2025 level of around 46%. Net debt increased to GBP188.6 million at the half year, with leverage of 1.1 times at the lower end of the target range and bank debt of GBP135.9 million, and the company declared an interim dividend of 1.8p per share, up 12.5%, while Egan said management remains on track to achieve the targeted adjusted operating margin of at least 14% in 2026.