Johnson Service improves margins but warns of softer hospitality demand

Johnson Service Group ($JSG) increased first-half adjusted operating profit by 3.8% to £29.8 million despite revenue edging up just 0.2% to £258 million. Its adjusted operating margin improved to 11.6% from 11.1%, supported by efficiency measures, cost discipline and lower energy costs. Statutory pre-tax profit rose 4.5% to £20.8 million, and the interim dividend increased 12.5% to 1.8 pence per share.

Trading was uneven: workwear revenue grew, while the hospitality-focused business faced weaker volumes and difficult pricing conditions. Management said the summer improvement was smaller than expected and softer hospitality trading is likely to persist. Nevertheless, the group retained its full-year target of at least a 14% adjusted operating margin. The message is continued margin progress, not a broad recovery in customer demand.

Sources:

• Johnson Service Group — interim results, RNS