Johnson Service Group plc (LSE:JSG) shares jumped 13% after the company reaffirmed its target for margin expansion in 2025 and 2026.
The textile services firm reported a strong 2024, with adjusted operating profit up 23% to £62.3 million.
Margins improved to 12.1% and are on track to hit at least 14% by 2026. The Hotel, Restaurant and Catering (HORECA) division was a standout, with revenue up 15% and EBITDA margins rising to 29.8%.
The company is also rewarding investors with a fresh £30 million share buyback, launching an initial £15 million tranche soon. The board is considering a move to the Main Market, with further updates expected.
CEO Peter Egan said the business is well-positioned for another year of growth. “We remain confident about delivering another year of progress and an improving margin in 2025.”
The shares were up 17.2p at 149p.