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Johnson Service Group PLC on Tuesday reported higher first-half profit and announced a new share buyback programme of up to £25 million, after completing a £30 million buyback earlier this year.
The Cheshire, England-based textile services provider said pretax profit for the six months to June 30 rose 6.4% to £19.9 million from £18.7 million a year before. Revenue grew 5.5% year-on-year to £257.5 million from £244.1 million.
Adjusted operating profit increased 14% to £28.7 million from £25.2 million, giving a margin of around 11%, up from 10% last year. The company said it remains on track to reach a 14% margin in 2026.
Within its Hotel, Restaurant & Catering division, revenue rose 7.2% to £185.4 million, while adjusted operating profit jumped 22% to £22.5 million. Workwear revenue edged up 1.3% to £72.1 million, with adjusted operating profit up 2.0% to £10.4 million.
Johnson Service declared an interim dividend of 1.6 pence per share, up 23% from 1.3p a year earlier, payable November 4.
The company also confirmed it had entered into a non-discretionary agreement with Investec Bank Plc and Ltd to repurchase up to £25 million of its shares by March 2, 2026.
Chief Executive Officer Peter Egan said: ‘Our continued focus on operational excellence and margin improvement has positioned us well to achieve our target of at least a 14% adjusted operating profit margin in 2026, and we are on track to meet full year adjusted operating profit in line with market expectations.’
Shares in Johnson Service were 8.8% higher at 150.60 pence in London on Tuesday morning.
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