Johnson Service Group plc (LSE:JSG) said it remained on track to deliver its 2026 margin target despite continued weakness in the UK and Irish hospitality market.
The textile services provider reported first-half revenue of about £258 million, broadly unchanged from £257.5 million a year earlier.
Growth in its Workwear division offset a modest decline in its Horeca business, which supplies hotels, restaurants and catering customers.
Group organic revenue declined about 0.7%, with Workwear growing 2.6% and Horeca falling 2.0%. Workwear revenue was helped by price increases, while Horeca saw hospitality trading remain subdued.
JSG said tight cost control and capital investment supported first-half margin progression, while its energy hedging programme provided good visibility over costs through 2026 and into 2027.
Net debt, including lease liabilities, increased to about £190 million at the end of June from £159.2 million at the end of 2025, reflecting dividend payments, capital expenditure, working capital movements and a £55 million share buyback.
Johnson Service reiterated guidance for another year of progress despite the difficult hospitality backdrop and said it remained on track to deliver an adjusted operating margin of at least 14.0% in the 2026 financial year.
