Textile services provider Johnson Service Group Plc (JSG.L), on Thursday, issued updates on its performance and outlook.
The company reported a 6.1% increase in group revenue, reaching £121.4 million in the first three months of 2025. Organic revenue growth was recorded at 2.2%, with the HORECA segment growing by 2.2% and Workwear by 2.3%.
Operations at the new Crawley HORECA site, launched in March, are progressing according to plan, with one-third of planned customer transfers completed by the end of April. Meanwhile, the Workwear segment remains stable, with improved customer retention expected to trend back to historical levels of 95%.
Bank debt has increased from £68.6 million in December 2024 to £84.5 million at the end of March 2025, with a mid-year peak projected at around £100.0 million, driven by dividend payments, share buybacks, working capital adjustments, and capital expenditure. However, JSG expects gearing to stay below 1x EBITDA throughout 2025, with a planned reduction in debt levels by December.
As part of its £15.0 million share buyback programme, JSG has returned £6.3 million to shareholders as of April 29. The company remains committed to maintaining a strong balance sheet, strategic acquisitions, and a progressive dividend policy, while ensuring surplus cash is efficiently distributed to shareholders.
Despite economic uncertainties, JSG remains confident in its ability to navigate challenges and sustain growth. With a well-invested business and robust financial position, the company is optimistic about delivering further progress throughout 2025 and beyond, targeting an adjusted operating profit margin of at least 14% in 2026.
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