Johnson Service grows profit and dividend in 2025 but stops buybacks

Johnson Service Group PLC on Tuesday announced growing revenue, pretax profit, and dividend for 2025, but the end of its buyback programmes in place since 2022 sent the company shares down.

The Cheshire, England-based textile rental business reported revenue of £535.4 million in 2025, up 4.3% from £513.4 million a year prior.

Pretax profit also improved, coming at £50.8 million at the end of 2025, up 7.6% from £47.2 million year-on-year.

The company, which saw workwear and hotel, restaurant, and catering revenue grow last year despite ‘uncertain economic outlook’ amid high energy costs and growing labour costs, brought its full-year dividend to 4.8 pence a share, up 20% from 2024’s 4.0 pence.

However, Johnson shares were down 7.4% to 133.40 pence each on Tuesday morning in London as the company did not report a new buyback programme after the completion of its last in January.

The company had buyback programmes in place since 2022, and completed two programmes worth a combined £55 million between March 2025 and January 2026. Johnson’s board says it will continue to ‘actively review’ its options for this year.

In its outlook, Johnson group said it remains on track to achieve an adjusted operating margin of at least 14% in 2026, having reached 13.5% this year, and that a strong balance sheet and cash generation allow it to ‘capitalise on appropriate opportunities as they arise’.

Chief Executive Offices Peter Egan said: ‘Our strong earnings growth and improved margin, in line with market expectations, reflects our investment to further improve operational efficiencies, continued focus on tight cost control and service excellence.’

‘Entering 2026...we expect to deliver another year of growth across the group and we remain on track towards achieving our target of an improved adjusted operating margin for 2026 of at least 14%,’ he added.

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