8 September 2026

TIDM: JSG

Johnson Service Group PLC

(‘JSG’ or ‘the Group’)

Interim Results for the Six Months ended 30 June 2026

2026 full year adjusted operating margin of at least 14% remains on track,

despite challenging market conditions

 

FINANCIAL OVERVIEW

	H1 2026	H1 2025	Increase	FY 2025
Adjusted results
Revenue	£258.0m	£257.5m	+0.2%	£535.4m
Adjusted operating profit1	£29.8m	£28.7m	+3.8%	£72.5m
Adjusted operating profit margin1	11.6%	11.1%	+50bps	13.5%
Adjusted EBITDA margin1	30.2%	29.3%	+90bps	31.2%
Adjusted profit before taxation2	£25.3m	£24.9m	+1.6%	£64.5m
Adjusted diluted earnings per share3	5.0p	4.6p	+8.7%	12.1p
Statutory results
Operating profit	£25.3m	£23.7m	+6.8%	£58.8m
Profit before taxation	£20.8m	£19.9m	+4.5%	£50.8m
Diluted earnings per share	3.9p	3.6p	+8.3%	9.2p
Dividend	1.8p	1.6p	+12.5%	4.8p

 

• Group revenue in line with prior year; organic revenue softened slightly to (0.7%) (Workwear: 2.6%; HORECA: (2.0%)).
• Group adjusted operating profit margin progression (+50 bps) reflects our continuing strong focus on operational efficiencies and disciplined cost management.
• Revenue for Workwear increased by 2.6% to £74.0 million (June 2025: £72.1 million) and adjusted operating profit increased by 5.8% to £11.0 million (June 2025: £10.4 million), resulting in an improved margin of 14.9% (June 2025: 14.4%).
• HORECA revenue decreased by (0.8%) to £184.0 million (June 2025: £185.4 million), whilst adjusted operating profit increased by 4.0% to £23.4 million (June 2025: £22.5 million), reflecting an improved margin of 12.7% (June 2025: 12.1%).
• £55.0 million share buyback programme, launched in May 2026, is progressing well, with £28.2 million, representing approximately 51% of the programme, completed as at 31 August 2026.
• Net debt (excluding IFRS 16 liabilities) at 30 June 2026 was £135.9 million (December 2025: £112.4 million) and net debt was £188.6 million (December 2025: £159.2 million).
• Leverage of 1.11x (December 2025: 0.95x) was towards the lower end of the Group’s target range of 1.0x – 1.5x.

 

OPERATIONAL OVERVIEW

• Macroeconomic headwinds continue to influence competitive dynamics across the Group’s end market.
• Workwear volumes were broadly stable, with customer retention levels maintained at 94%.
• HORECA experienced a slower start to the year against a difficult market backdrop; price increases and contract renewals remain challenging and we continue to see some market churn.
• Our focus remains on operational efficiency, dynamic pricing and disciplined cost management.
• Labour costs continue to be proactively managed across the Group through disciplined resource management and targeted capital investment.
• Energy costs, as a percentage of revenue, reduced to 7.0% (June 2025: 7.8%), with the majority of the Group’s anticipated electricity, gas and diesel requirements for the remainder of 2026 fixed or hedged.  The Group has also fixed approximately 60% of its anticipated electricity usage and 70% of its anticipated gas usage for 2027.

 

OUTLOOK

• Our strong financial position and cash generative operating model support a disciplined approach to capital allocation, enabling us to pursue further earnings enhancing opportunities as they arise.
• Workwear is expected to continue to benefit from stable volumes and the implementation of customer price increases.
• The seasonal uplift in HORECA over the summer months was more modest than originally anticipated and we expect that softer trading will persist throughout the remainder of the year.
• However, productivity improvements and our strong focus on operational cost management continue to help mitigate the impact of lower volumes in HORECA.
• The Board will continue to actively review its options on capital allocation, evaluating the balance between organic growth ambitions, investing in our acquisition strategy and returns to Shareholders.
• Notwithstanding the ongoing market challenges, the Board continues to expect to deliver another year of progress and to achieve its targeted adjusted operating margin of at least 14.0% in 2026.

 

Peter Egan, Chief Executive Officer of Johnson Service Group PLC, commented:

“Against a challenging market backdrop, the Group delivered a resilient first-half performance, with adjusted operating profit increasing by 3.8% and the adjusted operating margin improving by 50 basis points.  Workwear continued to make progress, while disciplined cost management, lower energy costs and the benefits of our continuing investment programme helped to mitigate softer volumes within HORECA.

Although the seasonal uplift in HORECA was more modest than originally anticipated, we expect to deliver another year of progress and remain on track to achieve our targeted adjusted operating margin of at least 14.0% for the full year.

I would like to thank all our employees for their continued dedication and significant contribution during the period.”

 

 

SELL-SIDE ANALYSTS’ MEETING

A presentation for sell-side analysts will be held today at 09:30, at Investec Bank plc, 30 Gresham Street, London EC2V 7QP, details of which will be distributed by Camarco.  A copy of the presentation and audio recording of the meeting will be available on the Group’s website (www.jsg.com) following the meeting.

 

ENQUIRIES

Johnson Service Group PLC
Peter Egan, CEO
Ryan Govender, CFO
Tel: 020 3757 4992/4981 (on the day)
Tel: 01928 704 600 (thereafter)
Investec Bank plc	Camarco (Financial PR)
David Flin	Ginny Pulbrook
Virginia Bull	Letaba Rimell
Tom Brookhouse
Tel: 020 7597 5970	Tel: 020 3757 4992/4981

 

Financial and Operational Review

BASIS OF PREPARATION

Throughout this statement, and consistent with prior years, a number of alternative performance measures (‘APMs’) are used to describe the Group's performance.  APMs are not recognised under UK-adopted international accounting standards.  Whilst the Board uses APMs to manage and assess the performance of the Group, and believes they are representative of ongoing trading, facilitate meaningful year-on-year comparisons and hence provide useful information to stakeholders, it is cognisant that they do have limitations and should not be regarded as a complete picture of the Group’s financial performance.  APMs, which include adjusted operating profit, adjusted profit before taxation, adjusted EBITDA, adjusted EPS and net debt excluding IFRS 16 lease liabilities, are defined within note 1 (Basis of Preparation) and are reconciled to statutory reporting measures in notes 2, 5, 8 and 18.

 

FINANCIAL REVIEW

Financial Results

Revenue in the period increased by 0.2% to £258.0 million (June 2025: £257.5 million).  Adjusted EBITDA was £77.9 million (June 2025: £75.4 million) giving an improved margin of 30.2% (June 2025: 29.3%).  Adjusted operating profit increased by 3.8% to £29.8 million (June 2025: £28.7 million), whilst the adjusted operating profit margin increased by 50 basis points to 11.6% (June 2025: 11.1%).

 

Segmental revenue, adjusted operating profit and adjusted operating profit margin are as follows:

 

	June 2026				June 2025
	Revenue	Adjusted Operating Profit	Margin		Revenue	Adjusted Operating Profit	Margin
	£m	£m	%		£m	£m	%
Workwear	74.0	11.0	14.9		72.1	10.4	14.4
HORECA	184.0	23.4	12.7		185.4	22.5	12.1
Central Costs	-	(4.6)	-		-	(4.2)	-
Group	258.0	29.8	11.6		257.5	28.7	11.1

 

Operating profit, after amortisation of intangible assets (excluding software amortisation) of £3.9 million (June 2025: £4.0 million) and an exceptional charge of £0.6 million (June 2025: £1.0 million), was £25.3 million (June 2025: £23.7 million).

 

Total finance costs were £4.5 million (June 2025: £3.8 million) reflecting higher borrowings over the period, most notably as a result of the £54.7 million cash outflow in 2025 and a further £12.7 million cash outflow in the first half of 2026 in relation to share buyback activity.

 

Adjusted profit before taxation was £25.3 million (June 2025: £24.9 million) whilst statutory profit before taxation was £20.8 million (June 2025: £19.9 million).

 

The tax rate on the adjusted profit before taxation was 24.5% (June 2025: 24.1%).  The rate is below the headline UK corporation tax rate for the full year of 25.0% due to the effect of expenses not deductible for taxation being offset by short-term timing differences and the impact of the lower rate of 12.5% applied to profits generated in the Republic of Ireland.

 

Adjusted diluted earnings per share increased by 8.7% to 5.0 pence (June 2025: 4.6 pence).

 

Dividend

An increased interim dividend of 1.8 pence per share (June 2025: 1.6 pence per share) will be paid on 6 November 2026 to those Shareholders on the register of members on 9 October 2026.  The ex-dividend date is 8 October 2026.  The increased dividend maintains our full year dividend cover of 2.5 times and is in line with our stated capital allocation policy.

 

Defined Benefit Pension Scheme (‘the Scheme’)

The recorded surplus for the Scheme, calculated in accordance with IAS 19, was £7.6 million at June 2026, compared to a surplus of £4.9 million at December 2025.  The improvement in the position is mainly driven by an increase in the discount rate assumption (due to increases in corporate bond yields), which has been slightly offset by a rise in the assumption of future inflation.

 

The Scheme continues to have a significant portion of assets invested so as to hedge the impact of any movements in bond yields, thereby reducing overall volatility.  The hedge target in place throughout the majority of the period was 85%, increasing to 95% in June 2026 and then to 100% in September 2026.

 

Cash Flow and Net Debt

Free cash flow (calculated as net cash generated from operating activities, less net spend on textile rental items, less the capital element of leases) in the first half of the year was £21.2 million, compared to £25.0 million in the first half of 2025.  The reduction reflects, in the main, an increased working capital outflow and higher interest payments.

 

Net debt (excluding IFRS 16 liabilities) at 30 June 2026 was £135.9 million (December 2025: £112.4 million), reflective of the timing of dividend payments, the ongoing share buyback programme, working capital movements and capital expenditure.  Including IFRS 16 lease liabilities, net debt at 30 June 2026 was £188.6 million (December 2025: £159.2 million).  Leverage at 1.11x (December 2025: 0.95x) was towards the lower end of our target range of 1.0x – 1.5x.

 

Financing

In April 2026, we completed the refinance of our committed revolving credit facility, which increased from £135.0 million to £175.0 million with a further £50.0 million accordion option, subject to lender consent.  The new facility matures in April 2030, with an option to extend for a further year with lender consent, and provides sufficient liquidity for current commitments and plans.

 

Bank covenants remain unchanged, comprising leverage (net debt to adjusted EBITDA) of less than three times and interest cover (adjusted operating profit to net interest payable) of at least four times.  The margin on the refinanced facility remains linked to our leverage covenant, which is calculated quarterly, and has reduced to a range of 1.30% to 2.30% (previously 1.45% to 2.45%) over the relevant SONIA or EURIBOR rate, as applicable.

 

Return on Capital Employed (‘ROCE’) 

ROCE, calculated as rolling 12-month adjusted operating profit divided by the average of opening and closing Shareholders’ equity, net debt and post-employment benefit obligations for the same 12-month period, was 16.7% (June 2025: 15.8%).

 

Capital Structure and Share Buyback

The Group’s objective is to employ a disciplined approach to investment, returns and capital efficiency to deliver sustainable, compounding earnings growth whilst also maintaining a strong balance sheet.  Accordingly, our capital allocation policy remains unchanged and takes into account:

• maintaining a strong balance sheet;
• investing in our estate to increase efficiency;
• appropriate accretive acquisitions;
• upholding a progressive dividend policy; and
• to the extent that there remains surplus cash, returning it to Shareholders.

 

The Group’s medium to long-term intention is to maintain a capital structure such that we target leverage of 1.0x - 1.5x, other than for short-term specific exceptions.

 

Under this framework, the Board announced a £55.0 million share buyback programme (the “Buyback Programme”) in May 2026 which, as at 31 August 2026, will have returned £28.2 million to Shareholders.  This brings the total amount returned to Shareholders through share buybacks since 2022 to £118.5 million.  During that period, some 88.2 million ordinary shares have been repurchased for cancellation at an average price of 134.35 pence per share, representing 19.8% of the share capital in issue immediately prior to the commencement of the 2022 share buyback programme.

 

The Board will continue to actively review its options on capital allocation, evaluating the balance between organic growth ambitions, investing in our acquisition strategy and returns to Shareholders.

 

OPERATIONAL REVIEW

Our Businesses

The Group provides textile rental and related services throughout the UK and Republic of Ireland.

 

Our Workwear division comprises solely of ‘Johnsons Workwear’, which predominantly provides workwear rental, protective wear and laundry services to UK corporates across all industry sectors.  Within our Hotel, Restaurant and Catering (‘HORECA’) division, ‘Johnsons Hotel Linen’, our high-volume linen business, primarily serves group and independent large hotel customers, ‘Johnsons Hotel, Restaurant and Catering Linen’ provides premium linen services to restaurant, hospitality and corporate event customers whilst ‘Johnsons Luxury Linen’ provides bespoke linen predominantly to four and five-star luxury hotels.  Also, within HORECA, ‘Johnsons Ireland’ serves both hospitality and healthcare customers.

 

Labour Cost Management

Labour costs continue to be proactively managed across the Group through disciplined resource management, to maximise productivity, and targeted capital investment aimed at delivering operational efficiencies.

 

In the six months to 30 June 2026, labour costs, as a percentage of revenue, increased to 47.2% (June 2025: 46.4%).  The increase reflects a 4.8% uplift in January 2026 to the National Minimum Wage in the Republic of Ireland and a 4.1% uplift in April 2026 to the National Living Wage in the UK.  Whilst labour costs for the full year, as a percentage of revenue, are expected to trend towards that for 2025, the significant wage increases remain difficult to fully pass through in a competitive environment.

 

Energy Cost Management

Energy costs (comprising gas, electricity and fuel) still remain at higher levels than historically, in part due to the ongoing conflict within the Middle East.  Accordingly, the Group’s policy on energy remains to forward fix pricing on a rolling basis, building a position such that our near-term requirements are largely fixed, thereby providing us with a high degree of visibility over 2026 and 2027 energy costs. 

 

Costs for the first half of 2026 represented 7.0% of revenue and, encouragingly, were lower than the equivalent period in 2025 (June 2025: 7.8%).  We anticipate a further modest reduction in this percentage in the second half.

 

The Group has fixed pricing for the second half of 2026 over approximately 80% of its anticipated electricity usage and 90% of its anticipated gas usage and has also hedged approximately 70% of its anticipated diesel requirement.  For 2027, the Group has fixed pricing for approximately 60% and 70% of its anticipated electricity and gas usage, respectively, and has also hedged approximately 20% of its anticipated diesel requirement. A prolonged conflict in the Middle East may exert upward pressure on unfixed and unhedged energy costs into 2027.

 

Looking further ahead, we have already entered into a number of fixed pricing arrangements in respect of our 2028 and 2029 electricity and gas requirements and we will continue to lock-in further prices on a rolling basis, in line with our established policy.

 

Workwear Division 

Revenue for the Workwear division was £74.0 million (June 2025: £72.1 million), an increase of 2.6%.  The increase was entirely organic, reflecting stable volumes and customer price increases.  Adjusted EBITDA increased to £26.5 million (June 2025: £25.9 million), with the resultant margin of 35.8% being broadly in line with the prior year (June 2025: 35.9%).  Adjusted operating profit was £11.0 million (June 2025: £10.4 million), an increase of 5.8%, resulting in an improved margin of 14.9% (June 2025: 14.4%), reflecting the benefit of operational efficiencies to offset cost inflation.

 

The division made a steady start to the year, with new business providing a platform for growth whilst, at the same time, we maintain a clear focus on retaining and developing existing customer relationships.  Sales activity maintained momentum, particularly within the industrial market, reflecting our continued focus on service quality, operational capability and delivering value for customers.  Similarly, and despite the competitive market landscape, our service team secured a number of contract renewals with multiple customers.  Customer retention was maintained at 94%, validating the strength of our customer relationships, the consistent quality of our service delivery and the diversity of our customer base.

 

Following the fire at our small industrial workwear processing unit in Bristol in June 2025, all remediation works have been successfully completed and processing operations have now been reinstated.  Whilst the unit was inoperable, work was processed at our sites in Exeter and Treforest with little, or no, disruption to customer service, demonstrating the resilience of the wider business.  We expect that the related insurance claim will be finalised before the end of the current financial year.

 

HORECA Division

Against a difficult market backdrop, HORECA experienced a slower start to the year.  Total revenue was £184.0 million (June 2025: £185.4 million), a reduction of 0.8%, whilst organic revenue performance was (2.0%).  Adjusted EBITDA increased to £55.9 million (June 2025: £53.7 million) giving an improved margin of 30.4% (June 2025: 29.0%).  Adjusted operating profit was £23.4 million (June 2025: £22.5 million), an increase of 4.0%, with an improved margin of 12.7% (2025: 12.1%) reflecting, in part, the benefits of lower energy and operational efficiencies as a result of recent capital investment.

 

Macroeconomic headwinds continue to influence competitive dynamics and impact customer behaviour across the Group’s end markets.  The hospitality sector within the UK and Republic of Ireland continues to face challenging trading conditions, including elevated labour, energy, business rates and other operating costs placing pressure on many hotel and restaurant operators.  These pressures have contributed to more cautious customer decision-making, resulting in suppressed volumes, more challenging price increases and contract renewals, and, in some areas, higher levels of customer churn as some customers seek to manage their own cost base.

 

In response to the current market backdrop, we remain focused on a combination of dynamic pricing, service-led differentiation and operational efficiency.  We continue to work closely with customers to demonstrate the value, reliability and operational criticality of our service.  At the same time, targeted investment in labour productivity, workflow optimisation, energy efficiency and water reduction is helping to offset cost pressures and strengthen margins.

 

The cost increases being experienced across UK businesses continue to lead some of our smaller, independent competitors to reassess their business strategy, with certain operators choosing to exit the market.  As a result, we added contracts with annualised revenue of over £5.0 million to the division during the first half of 2026 and anticipate that further opportunities will continue to arise.

Johnsons Hotel Linen

Our key objectives of being ‘easy to do business with’, providing customers with an excellent professional service, delivering on time and in full and building long-term partnerships with customers and suppliers remain at the forefront of the business.  Our field-based service teams and drivers, in particular, continue to receive excellent feedback from customers for their collaborative service approach.

 

The successful delivery of our service has enabled us to re-sign and extend a number of key customer contracts in the period, with one of our largest customers committing to a further five-year term together with an increase in the number of hotels serviced by us.  Reflecting the difficult market backdrop, this success has not been universal, with customer churn and suppressed volumes leading to an overall slight reduction in trading year-on-year.

 

Johnsons Hotel, Restaurant & Catering

Sales activity has remained broadly stable, and we have been able to secure, or retain, a number of customer contracts during the period, reflecting the strength and reliability of our service proposition and national operating platform.  Trading in the central London restaurant market also remained resilient.

 

However, the effect of significantly increased business costs has particularly impacted on some of the independent hotel and restaurant customers that we typically serve.  As a consequence, this has resulted in price increase and renewal negotiations having become more challenging, resulting in weaker demand and increased market churn.

 

Johnsons Luxury Linen

The Luxury Linen business delivered a satisfactory operational performance in the first half of the year, despite lower demand in London luxury hotels influenced by the prolonged Middle East conflict.  Trading was supported by strong customer retention and a continued focus on operational excellence in order to deliver the very best level of service to its discerning customers.  The sales pipeline remains encouraging and supports our growth ambition to expand our reach across four and five-star luxury hotels.

 

Those customers obtained from an independent operator earlier in the year continue to be onboarded in a controlled and systematic manner.  During the period, we successfully launched our offering in Cornwall, leveraging existing Group infrastructure, representing the first extension of our luxury operating model beyond the existing core network.

 

Johnsons Ireland

Johnsons Ireland services customers across the entire island of Ireland from its three processing facilities in Wexford, Naas and Belfast.  Whilst the competitive landscape within Ireland remains challenging, particularly within hospitality, the business has continued to focus on delivering a reliable and quality service to its customer base.  Similar to the UK, ongoing inflationary cost headwinds, particularly in relation to labour, continue to impact not only ourselves but also our customers.

 

Within healthcare, volumes remained broadly stable although we are experiencing some challenges with customer pricing. Positively, we have recently commenced servicing a large public acute hospital with over 600 beds and the pipeline for further opportunities remains encouraging.  In hospitality, overall volumes also remained broadly stable although there were regional variances across the island.  Customer churn, which is predominantly price-driven, has been largely offset with gains, albeit often at lower pricing.

 

Capital Investment

Capital expenditure in the first half of the year was £17.4 million (June 2025: £23.8 million), with targeted capital investment continuing to focus on delivering improved operational efficiencies across the estate, reducing our carbon footprint and water usage and supporting the long-term resilience of the business.

 

Within Workwear, investment included the installation of new washer extractors at Uttoxeter, the implementation of heat recovery technology at Perth and new tunnel finishers at Gateshead and Birmingham to drive efficiencies.

 

In HORECA, capital projects during the period included the installation of new dryers at Pwllheli and Cardiff and a new boiler at our Bourne site, all of which help drive further improvements in our gas efficiency.  In Tottenham, high-speed ironing lines were installed and the migration of its legacy IT infrastructure to that utilised across the wider group enhances the site’s disaster recovery capabilities.  We have commenced a two-year roof replacement project at Wexford and the refurbishment of our Naas site.  Across the division, we have also continued to invest in process and workflow optimisation to further enhance service levels and improve productivity.

 

Sustainability

Sustainability remains closely linked to operational performance and long-term value creation and, recognising our duty to stakeholders to operate the business in an ethical and responsible manner, we continue to make steady progress with embedding our sustainability programme across the Group and supporting the integration of sustainability into our strategy, operations and decision‑making.

 

We are continuing to work with both our customers and suppliers as we make progress in meeting our goals and, in June 2026, we published our fifth Sustainability Report, which sets out our sustainability strategy, governance, performance and progress in 2025.  The report can be found on our website at www.jsg.com.

 

During the first half of 2026, we made further progress against our Vision 2030 targets.  Through operational improvements, plant and machinery upgrades, increased waste diversion from landfill and reduced reliance on single-use plastics, we continued to reduce the impact of our operations.    We have also retained our silver medal award from EcoVadis, placing us in the top 10% of companies assessed by EcoVadis globally and in the top 6% within our industry category.

 

Reflecting the outcomes of our Double Materiality Assessment, which was undertaken in 2025, our priorities for the rest of 2026 will focus on those areas where we have the greatest impacts, risks and opportunities across our operations and value chain.

 

Employees

Our employees are key to the continuing success of the Group and, in particular, in our ability to deliver customer service levels which exceed our customers’ expectations.  The Board would like to thank them for their support, hard work and significant contribution to the progress of the business over the last six months.

 

Ensuring employees achieve their full potential remains a key focus of the Group.  Providing a range of training, education, apprenticeship and development programmes for employees allows them to take advantage of career progression opportunities within the Group and helps to build a workforce for the future.  In addition to the significant volume of operational, compliance and role-specific training delivered internally, a number of key externally accredited training and development programmes were also successfully completed.

 

Employee engagement activity remains ongoing, supporting our people and providing clean, safe and enjoyable environments to work in.  

 

BOARD CHANGES

As previously announced, Lysanne Gray joined the Board as an Independent Non-Executive Director on 1 June 2026 and, with effect from today, will succeed Chris Girling as Audit Committee Chair.  In addition, Nicola Keach, who has served as an Independent Non-Executive Director of the Company since June 2022, succeeded Chris Girling as Senior Independent Director with effect from 1 June 2026. Chris will continue to serve as an Independent Non-Executive Director until he steps down and retires from the Board on 31 December 2026.

 

OUTLOOK

Whilst macroeconomic headwinds continue to influence competitive dynamics across our end markets, the Group continues to demonstrate resilience through its strong customer relationships, disciplined cost management and ongoing investment in operational efficiencies and has delivered further progress in the first half of the year.

 

Workwear is expected to continue to benefit from stable volumes and the implementation of customer price increases. The seasonal uplift in HORECA over the summer months was more modest than originally anticipated and we expect that this softer trading will persist throughout the remainder of the year. However, productivity improvements and our strong focus on operational cost management continue to help mitigate the impact of lower volumes in HORECA.

 

The Group’s strong financial position and cash generative operating model support a disciplined approach to capital allocation, enabling us to pursue further earnings enhancing opportunities as they arise.  The £55.0 million share buyback programme announced in May 2026 is progressing well and brings, as at 31 August 2026, the total amount returned to Shareholders through share buybacks since 2022 to £118.5 million.  The Board will continue to actively review its options on capital allocation, evaluating the balance between organic growth ambitions, investing in our acquisition strategy and returns to Shareholders.

 

Notwithstanding the ongoing market challenges, the Board continues to expect to deliver another year of progress and to achieve its targeted adjusted operating margin of at least 14.0% in 2026.

 

RESPONSIBILITY STATEMENT

The condensed consolidated interim financial statements comply with the Disclosure Guidance and Transparency Rules (‘DTR’) of the United Kingdom’s Financial Conduct Authority in respect of the requirement to produce a half-yearly financial report.  The condensed consolidated interim financial statements are the responsibility of, and have been approved by, the Directors.

 

The Directors confirm that to the best of their knowledge:

• the condensed consolidated interim financial statements have been prepared in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the United Kingdom;
• this interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the year); and
• this interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

 

The Directors of Johnson Service Group PLC are listed in the Johnson Service Group PLC 2025 Annual Report and, other than for the appointment of Lysanne Gray on 1 June 2026, remain unchanged. Details of the Directors are available on the Johnson Service Group PLC website: www.jsg.com.

 

By order of the Board

 

 

Peter Egan                                             Ryan Govender

Chief Executive Officer                          Chief Financial Officer

8 September 2026                                 8 September 2026

Forward Looking Statements

Certain statements in these condensed consolidated interim financial statements constitute forward-looking statements.  Any statement in this document that is not a statement of historical fact including, without limitation, those regarding the Group’s future expectations, operations, financial performance, financial condition and business is a forward-looking statement.  Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially.  These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions.  These and other factors could adversely affect the outcome and financial effects of the plans and events described in these condensed consolidated interim financial statements.  As a result, you are cautioned not to place reliance on such forward-looking statements.  Nothing in this document should be construed as a profit forecast.

 

Consolidated Income Statement

	Note			Half year to 30 June 2026 £m	Half year to 30 June 2025 £m	Year ended 31 December                2025 £m
Revenue	2			258.0	257.5	535.4
Impairment loss on trade receivables				(0.3)	(0.5)	(1.2)
All other costs				(232.4)	(233.3)	(475.4)
Operating profit	2			25.3	23.7	58.8
Operating profit before amortisation of intangible assets (excluding software amortisation) and exceptional items				29.8	28.7	72.5
Amortisation of intangible assets (excluding software amortisation)				(3.9)	(4.0)	(7.7)
Exceptional items	3			(0.6)	(1.0)	(6.0)
Operating profit	2			25.3	23.7	58.8
Net finance cost	4			(4.5)	(3.8)	(8.0)
Profit before taxation				20.8	19.9	50.8
Taxation charge	7			(5.9)	(5.3)	(13.8)
Profit for the period from continuing operations				14.9	14.6	37.0
Profit for the period from discontinued operations				-	-	0.1
Profit for the period attributable to equity holders				14.9	14.6	37.1
Earnings per share	8
Basic earnings per share				4.0p	3.6p	9.3p
Diluted earnings per share				3.9p	3.6p	9.2p

See note 8 for adjusted basic earnings per share and adjusted diluted earnings per share.

 

 

 

Consolidated Statement of Comprehensive Income

 

								Half year to 30 June 2026												Half year to 30 June 2025			Year ended  31 December  2025
							Note									£m				£m			£m
Profit for the period													14.9							14.6			37.1
Items that will not be subsequently reclassified to profit or loss
		Re-measurement and experience gains on post-employment benefit obligations						14					2.6							2.8			0.9
		Taxation in respect of re-measurement and experience gains											(0.6)							(0.7)			(0.2)
Items that may be subsequently reclassified to profit or loss
​	Cash flow hedges (net of taxation)				- fair value gains / (losses)						1.0								(0.4)			(0.3)
					- transfers to administrative expenses						(0.6)								0.2			0.3
	Net gain / (loss) on hedge of a net investment										0.3								(0.9)			(1.4)
	Exchange differences on translation of foreign operations					(0.1)												1.0			1.7
Other comprehensive income for the period												2.6								2.0			1.0
Total comprehensive income for the period												17.5								16.6			38.1

 

The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements.

​

​

 Consolidated Statement of Changes in Shareholders’ Equity

 

	Share Capital			Share Premium			Merger Reserve			Capital Redemption Reserve	Hedge Reserve		Translation Reserve		Retained Earnings		Total Equity
	£m			£m			£m			£m	£m		£m		£m		£m
Balance at 1 January 2025	41.5			17.3			1.6			3.7	(0.2)		-		243.0		306.9
Profit for the period	-			-			-			-	-		-		14.6		14.6
Other comprehensive (loss) / income	-			-			-			-	(0.2)		0.1		2.1		2.0
Total comprehensive (loss) / income for the period	-			-			-			-	(0.2)		0.1		16.7		16.6
Share options (value of employee services)	-			-			-			-	-		-		0.8		0.8
Purchase of own shares by EST	-			-			-			-	-		-		(0.1)		(0.1)
Share buyback	(1.2)			-			-			1.2	-		-		(19.8)		(19.8)
Deferred tax on share options	-			-			-			-	-		-		0.2		0.2
Corporation tax on share options	-			-			-			-	-		-		(0.1)		(0.1)
Issue of share capital	0.2			0.2			-			-	-		-		-		0.4
Dividend paid	-			-			-			-	-		-		(11.1)		(11.1)
Transactions with Shareholders recognised directly in Shareholders’ equity	(1.0)			0.2			-			1.2	-		-		(30.1)		(29.7)
Balance at 30 June 2025	40.5			17.5			1.6			4.9	(0.4)		0.1		229.6		293.8
Profit for the period	-			-			-			-	-		-		22.5		22.5
Other comprehensive income / (loss)		-		-			-			-		0.2		(0.1)		(1.1)			(1.0)
Total comprehensive income / (loss) for the period	-			-			-			-	0.2		(0.1)		21.4		21.5
Share options (value of employee services)	-			-			-			-	-		-		1.6		1.6
Share buyback	(2.6)			-			-			2.6	-		-		(34.9)		(34.9)
Deferred tax on share options	-			-			-			-	-		-		(0.7)		(0.7)
Issue of share capital	(0.1)			-			-			-	-		-		-		(0.1)
Corporation tax on share options	-			-			-			-	-		-		0.2		0.2
Dividend paid	-			-			-			-	-		-		(6.3)		(6.3)
Transactions with Shareholders recognised directly in Shareholders’ equity	(2.7)			-			-			2.6	-		-		(40.1)		(40.2)
Balance at 31 December 2025	37.8			17.5			1.6			7.5	(0.2)		-		210.9		275.1
Profit for the period	-			-			-			-	-		-		14.9			14.9
Other comprehensive income	-			-			-			-	0.4		0.2		2.0			2.6
Total comprehensive income for the period	-			-			-			-	0.4		0.2		16.9			17.5
Share options (value of employee services)	-			-			-			-	-		-		1.1			1.1
Purchase of own shares by EST	-			-			-			-	-		-		(0.2)			(0.2)
Share buyback (note 15)	(0.8)			-			-			0.8	-		-		(12.7)			(12.7)
Issue of share capital	0.2			0.5			-			-	-		-		-			0.7
Dividend paid	-			-			-			-	-		-		(12.2)			(12.2)
Transactions with Shareholders recognised directly in Shareholders’ equity	(0.6)			0.5			-			0.8	-		-		(24.0)			(23.3)
Balance at 30 June 2026	37.2			18.0			1.6			8.3	0.2		0.2		203.8			269.3

 

The Group has an Employee Share Trust (EST) to administer share plans and to acquire shares, using funds contributed by the Group, to meet commitments to employee share schemes.  As at 30 June 2026, the EST held 9,177 shares (June 2025: 2,615 shares; December 2025: 2,947 shares).

 

Consolidated Balance Sheet

		As at 30 June 2026	As at 30 June  2025	As at 31 December 2025
	Note	£m	£m	£m
Non-current assets
Goodwill	9	153.9	153.8	154.0
Intangible assets	10	25.3	28.1	24.9
Property, plant and equipment	11	175.3	172.6	168.9
Right-of-use assets	12	47.8	41.7	42.3
Textile rental items	13	75.7	73.3	80.0
Trade and other receivables		0.8	0.5	0.8
Post-employment benefit assets	14	7.6	6.7	4.9
		486.4	476.7	475.8
Current assets
Inventories		5.2	4.3	2.9
Trade and other receivables		97.0	91.6	87.1
Reimbursement assets		9.8	2.5	2.1
Derivative financial assets		0.3	-	-
Current income tax assets		0.6	0.8	0.4
Cash and cash equivalents		6.4	11.5	11.0
Assets classified as held for sale		0.2	0.2	0.2
		119.5	110.9	103.7
Current liabilities
Trade and other payables		89.1	100.1	93.1
Borrowings		9.2	8.8	9.0
Lease liabilities		9.3	6.8	7.4
Derivative financial liabilities		-	0.3	0.3
Provisions		9.9	2.9	2.2
		117.5	118.9	112.0
Non-current liabilities
Post-employment benefit obligations	14	0.2	0.3	0.3
Deferred income tax liabilities		42.0	32.9	37.8
Trade and other payables		0.1	0.2	0.1
Borrowings		133.1	101.7	114.4
Lease liabilities		43.4	39.2	39.4
Derivative financial liabilities		-	0.3	-
Provisions		0.3	0.3	0.4
		219.1	174.9	192.4
NET ASSETS		269.3	293.8	275.1
Capital and reserves attributable to the Company’s Shareholders
Share capital	15	37.2	40.5	37.8
Share premium		18.0	17.5	17.5
Merger reserve		1.6	1.6	1.6
Capital redemption reserve		8.3	4.9	7.5
Hedge reserve		0.2	(0.4)	(0.2)
Translation reserve		0.2	0.1	-
Retained earnings		203.8	229.6	210.9
Total equity		269.3	293.8	275.1

 

 

The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements.  The condensed consolidated interim financial statements on pages 14 to 34 were approved by the Board of Directors on 8 September 2026 and signed on its behalf by:

 

 

Ryan Govender

Chief Financial Officer

​

​

​

Consolidated Statement of Cash Flows

			Note	Half year to 30 June 2026 £m	Half year to 30 June 2025 £m	Year ended 31 December 2025 £m
Cash flows from operating activities
Profit for the period				14.9	14.6	37.1
Adjustments for:
Taxation charge			7	5.9	5.3	13.8
Finance cost				4.5	3.8	8.0
Depreciation				48.1	46.4	94.0
Amortisation				3.9	4.3	8.0
Profit on disposal of property, plant and equipment				(0.1)	(0.1)	-
Increase in inventories				(2.3)	(2.0)	(0.6)
Increase in trade and other receivables				(8.8)	(9.2)	(1.4)
(Decrease) / increase in trade and other payables				(2.6)	1.5	(6.4)
Share-based payments				1.1	0.8	2.4
Decrease in provisions				(0.2)	(0.3)	(0.5)
Cash generated from operations				64.4	65.1	154.4
Interest paid				(5.8)	(3.7)	(7.9)
Taxation paid				(2.8)	(3.3)	(6.6)
Net cash generated from operating activities				55.8	58.1	139.9
Cash flows from investing activities
Acquisition of business (including net of cash acquired)				-	(0.2)	(0.2)
Purchase of other intangible assets				(4.4)	(2.9)	(3.4)
Purchase of property, plant and equipment				(17.4)	(23.8)	(35.8)
Purchase of software				-	-	(0.1)
Proceeds from sale of property, plant and equipment				0.2	0.1	0.2
Purchase of textile rental items				(32.3)	(30.7)	(65.8)
Proceeds received in respect of special charges				0.8	1.0	2.1
Net cash used in investing activities				(53.1)	(56.5)	(103.0)
Cash flows from financing activities
Proceeds from borrowings				64.9	52.0	96.8
Repayments of borrowings				(45.4)	(22.5)	(55.3)
Capital element of leases				(3.1)	(3.4)	(7.1)
Share buyback				(12.7)	(16.8)	(54.7)
Purchase of own shares by EST				(0.2)	(0.1)	(0.1)
Proceeds from issue of share capital				0.7	0.4	0.3
Dividends paid to company shareholders				(12.2)	(11.1)	(17.4)
Net cash used in financing activities				(8.0)	(1.5)	(37.5)
Net (decrease) / increase in cash and cash equivalents				(5.3)	0.1	(0.6)
Cash and cash equivalents at beginning of the period				1.9	2.2	2.2
Effect of exchange rate fluctuations on cash held				0.1	0.2	0.3
Cash and cash equivalents at end of the period			18	(3.3)	2.5	1.9
Cash and cash equivalents comprise:
Cash				6.4	11.5	11.0
Overdraft				(9.7)	(9.0)	(9.1)
Cash and cash equivalents at end of the period				(3.3)	2.5	1.9

 

The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements.

 

 

​

Notes to the Condensed Consolidated Interim Financial Statements

Johnson Service Group PLC (the ‘Company’) and its subsidiaries (together ‘the Group’) provide textile rental and related services across the United Kingdom (‘UK’) and the Republic of Ireland (‘ROI’).

 

The Company is incorporated and domiciled in the UK, its registered number is 523335 and the address of its registered office is Johnson House, Abbots Park, Monks Way, Preston Brook, Cheshire, WA7 3GH.  The Company is a public limited company and has its primary listing on the Main Market of the London Stock Exchange.

 

The condensed consolidated interim financial statements were authorised for issue by the Board on 8 September 2026.

 

 

1.             BASIS OF PREPARATION

 

Overview

These condensed consolidated interim financial statements of the Group are for the half year ended 30 June 2026.  They have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, ’Interim Financial Reporting’, as adopted by the United Kingdom.

 

The condensed consolidated interim financial statements have not been reviewed or audited, nor do they comprise statutory accounts for the purpose of Section 434 of the Companies Act 2006, and do not include all of the information or disclosures required in the annual financial statements and should therefore be read in conjunction with the Group’s 2025 Annual Report and Accounts, which was prepared in accordance with UK-adopted international accounting standards.

 

Financial information for the year ended 31 December 2025 included herein is derived from the statutory accounts for that year, which have been filed with the Registrar of Companies.  The auditors’ report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.

 

Other than as described below, financial information for the half year ended 30 June 2025 included herein is derived from the condensed consolidated interim financial statements for that period.

 

Accounting Policies, Presentation and Computation

The condensed consolidated interim financial statements have been prepared applying the accounting policies, presentation and methods of computation applied by the Group in the preparation of the published consolidated financial statements for the year ended 31 December 2025.

 

(a)  Taxation

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings before exceptional items.  Taxation on exceptional items is accrued as the exceptional items are recognised.  Prior year adjustments in respect of taxation are recognised when it becomes probable that such adjustment is needed.

 

(b)  Seasonality of operations

Seasonality or cyclicality could affect all of the businesses to varying extents however, the Directors do not consider such seasonality or cyclicality to be significant in the context of the condensed consolidated interim financial statements.

 

(c)  Critical accounting estimates and assumptions

The preparation of the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.   Actual results may differ from these estimates.

 

Going Concern

Background and Summary

After careful assessment, the Directors have adopted the going concern basis in preparing these condensed consolidated interim financial statements.  The process and key judgments in coming to this conclusion are set out below.

 

The Group’s business activities, together with details of the financial position of the Group, its cash flows, liquidity position and borrowing facilities, are described in the Financial and Operational Review.

 

Going Concern Assessment

Cash Flows, Covenants and Stress Testing

For the purposes of the going concern assessment, the Directors have prepared monthly cash flow projections for the period to 31 December 2027 (the assessment period).  The Directors consider 18 months to be a reasonable period for the going concern assessment as it enables them to consider the potential impact of macroeconomic and geopolitical factors over an extended period.  The cash flow projections show that the Group has significant headroom against its committed facilities and can meet its financial covenant obligations.

 

The Group has also performed a reverse stress test against the base monthly cash flow projections referred to above in order to determine the performance level that would result in a reduction in headroom against its committed facilities to nil or a breach of its covenants.  The facility headroom would reduce to nil in the event that adjusted operating profit reduced to approximately 75% of 2025 levels.  The Directors do not consider this scenario to be likely.

 

As a further stress test, the Group considered the impact of increasing interest rates.  The Directors do not consider the magnitude of the increase in interest rates that would be required in order for a covenant to be breached, or the facility headroom to reduce to nil, to be plausible.

 

Each of the stress tests assume no mitigating actions are taken.  Mitigating actions available to the Group, should they be required, include reductions in discretionary capital expenditure and ceasing dividend payments.

​

1 BASIS OF PREPARATION (continued)

 

Liquidity

The Group has access to a committed Revolving Credit Facility of £175.0 million (the ‘Facility’) which matures in April 2030.  The terms of the Facility provide an option to extend the term for a further year and an option to increase the Facility by up to a further £50.0 million, both with lender consent.  The Facility is considerably in excess of our anticipated borrowings and provides ample liquidity for current commitments.

 

Going Concern Statement

After considering the monthly cash flow projections, the stress tests and the facilities available to the Group, the Directors have a reasonable expectation that the Group has adequate resources for its operational needs, will remain in compliance with the financial covenants set out in the bank facility agreement and will continue in operation for at least the period to 31 December 2027.  Accordingly, and having reassessed the principal risks and uncertainties, the Directors considered it appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements.

 

Alternative Performance Measures (APMs)

Overview of APMs

Throughout this Interim Statement, and consistent with prior years, we refer to a number of APMs.  APMs are used by the Group to provide further clarity and transparency of the Group's financial performance.  The APMs are used internally by management to monitor business performance, budgeting and forecasting, and to determine the Directors' remuneration and that of other management throughout the business.  The APMs, which are not recognised under UK-adopted international accounting standards, are:

• ‘adjusted operating profit’, which refers to continuing operating profit/(loss) before amortisation of intangible assets (excluding software amortisation), and exceptional items;
• ‘adjusted profit before taxation’, which refers to adjusted operating profit less finance cost;
• ‘adjusted EBITDA’, which refers to adjusted operating profit plus the depreciation charge for property, plant and equipment, textile rental items and right of use assets, plus software amortisation;
• ‘adjusted diluted EPS’, which refers to EPS calculated based on adjusted profit after taxation; and
• ‘net debt excluding IFRS 16 lease liabilities’

 

The Board considers that the above APMs, all of which exclude the effects of non-recurring items or non-operating events, provide useful information for stakeholders on the underlying trends and performance of the Group and facilitate meaningful year on year comparisons.

 

Limitations of APMs

The Board is cognisant that APMs do have limitations and should not be regarded as a complete picture of the Group’s financial performance.  Limitations of APMs may include, inter alia:

• similarly named measures may not be comparable across companies;
• profit-related APMs may exclude significant, sometimes recurring, business transactions (e.g. restructuring charges and acquisition-related costs) that impact financial performance and cash flows; and
• adjusted operating profit, adjusted profit before taxation, adjusted EBITDA and adjusted EPS all exclude the amortisation of intangibles acquired in business combinations, but do not similarly exclude the related revenue.

 

Reconciliation of APMs to Statutory Performance Measures

Reconciliations between the above APMs and statutory performance measures are reconciled within this Interim Statement as follows:

• Adjusted operating profit – note 2
• Adjusted profit before taxation – note 5
• Adjusted EBITDA – note 5
• Adjusted EPS – note 8
• Net debt excluding IFRS 16 lease liabilities – note 18.

 

2 SEGMENT ANALYSIS

 

Segment information is presented based on the Group’s management and internal reporting structure as at 30 June 2026.

 

The chief operating decision-maker (CODM) has been identified as the Executive Directors.  The CODM reviews the Group’s internal reporting in order to assess performance and allocate resources.  The CODM determines the operating segments based on these reports and on the internal reporting structure. 

 

For reporting purposes, the CODM considered the aggregation criteria set out within IFRS 8, ‘Operating Segments’, which allows for two or more operating segments to be combined as a single reporting segment if:

1.         aggregation provides financial statement users with information that allows them to evaluate the business and the environment in which it operates; and
2.         they have similar economic characteristics (for example, where similar long-term average gross margins would be expected) and are similar in each of the following respects:

• the nature of the products and services;
• the nature of the production processes;
• the type or class of customer for their products and services;
• the methods used to distribute their products or provide their services; and
• the nature of the regulatory environment (i.e. banking, insurance or public utilities), if applicable.

 

The CODM deems it appropriate to present two reporting segments (in addition to ‘Discontinued Operations’ and ‘All Other Segments’), being:

1.         Hotel, Restaurant and Catering (‘HORECA’): comprising of our Johnsons Hotel, Restaurant and Catering Linen, Johnsons Hotel Linen, Johnsons Luxury Linen and Johnsons Ireland businesses, each of which are a separate operating segment.
2.         Workwear: comprising of our Johnsons Workwear business only; and

 

The CODM’s rationale for aggregating the Johnsons Hotel Linen, Johnsons Hotel, Restaurant and Catering Linen, Johnsons Luxury Linen and Johnsons Ireland operating segments into a single reporting segment is set out below:

• the gross margins of each operating segment are within a similar range, with the long-term average margin expected to further align;
• the nature of the customers, products and production processes of each operating segment are very similar;
• the nature of the regulatory environment is the same due to the similar nature of products, processes and customers involved; and
• distribution is via exactly the same method across each operating segment.

 

The CODM assesses the performance of the reporting segments based on a measure of operating profit, both including and excluding the effects of non-recurring items from the reporting segments, such as restructuring costs and impairments when the impairment is the result of an isolated, non-recurring or non-operating event.  Interest income and expenditure are not included in the result for each reporting segment that is reviewed by the CODM.  Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis, for example rental income received by Johnson Group Properties PLC (the property holding company of the Group) is credited back, where appropriate, to the paying company for the purpose of segmental reporting.  There have been no changes in the measurement methods used compared to the prior year.

 

Other information provided to the CODM is measured in a manner consistent with that in the financial statements.  Segment assets exclude deferred income tax assets, post-employment benefit assets, derivative financial assets, current income tax assets and cash and cash equivalents, all of which are managed on a central basis.  Segment liabilities include lease liabilities but exclude bank borrowings, derivative financial liabilities, post-employment benefit obligations and deferred income tax liabilities, all of which are managed on a central basis.  These balances are part of the reconciliation to total assets and liabilities.

 

 

2 SEGMENT ANALYSIS (continued)

 

The reporting segment results for the half year ended 30 June 2026, together with comparative figures, are as follows:

 

Half year to 30 June 2026				HORECA	Workwear	All Other Segments	Total
				£m	£m	£m	£m
Revenue
Rendering of services				183.8	72.3	-	256.1
Sale of goods				0.2	1.7	-	1.9
Total revenue				184.0	74.0	-	258.0
Cost of sales				(110.4)	(44.3)	-	(154.7)
Distribution costs				(30.9)	(10.7)	-	(41.6)
Administrative costs				(19.3)	(8.0)	(4.6)	(31.9)
Operating profit / (loss) before amortisation of intangible assets (excluding software amortisation) and exceptional items				23.4	11.0	(4.6)	29.8
Amortisation of intangible assets (excluding software amortisation)				(3.9)	-	-	(3.9)
Exceptional items				(0.2)	-	(0.4)	(0.6)
Operating profit / (loss)				19.3	11.0	(5.0)	25.3
Net finance cost							(4.5)
Profit before taxation							20.8
Taxation charge							(5.9)
Profit for the period attributable to equity holders							14.9
All of the above revenues are generated in the United Kingdom, with the exception of £17.2 million generated within the Republic of Ireland.
				HORECA	Workwear	All Other Segments	Total
				£m	£m	£m	£m
Balance sheet information
Segment assets				404.4	184.5	2.1	591.0
Unallocated assets:                 Derivative financial assets							0.3
Post-employment benefit							7.6
Current income tax assets							0.6
Cash and cash equivalents							6.4
Total assets							605.9
Segment liabilities				(91.0)	(55.3)	(5.8)	(152.1)
Unallocated liabilities: Bank borrowings							(142.3)
Post-employment benefit obligations							(0.2)
Deferred income tax liabilities							(42.0)
Total liabilities							(336.6)
				HORECA	Workwear	All Other Segments	Total
				£m	£m	£m	£m
Other information
Non-current asset additions
- Property, plant and equipment				16.2	4.0	-	20.2
- Right of use assets (including reassessment / modification)				0.4	8.8	-	9.2
- Textile rental items				17.3	10.2	-	27.5
- Customer Contracts				4.4	-	-	4.4
Depreciation and amortisation expense
- Property, plant and equipment				10.4	3.0	-	13.4
- Right of use assets				2.3	1.3	0.1	3.7
- Textile rental items				19.8	11.2	-	31.0
- Customer contracts and brands				3.9	-	-	3.9

 

With the exception of non-current assets of £19.7 million which were located in the Republic of Ireland, all non-current assets of the Group reside in the Group’s country of domicile, the United Kingdom.

 

2 SEGMENT ANALYSIS (continued)

Half year to 30 June 2025									HORECA	Workwear	All Other Segments	Total
									£m	£m	£m	£m
Revenue
Rendering of services									185.3	70.6	-	255.9
Sale of goods									0.1	1.5	-	1.6
Total revenue									185.4	72.1	-	257.5
Cost of sales									(111.9)	(43.9)	-	(155.8)
Distribution costs									(32.0)	(10.2)	-	(42.2)
Administrative costs									(19.0)	(7.6)	(4.2)	(30.8)
Operating profit / (loss) before amortisation of intangible assets (excluding software amortisation) and exceptional items									22.5	10.4	(4.2)	28.7
Amortisation of intangible assets (excluding software amortisation)									(4.0)	-	-	(4.0)
Exceptional items									(0.4)	(0.3)	(0.3)	(1.0)
Operating profit / (loss)									18.1	10.1	(4.5)	23.7
Net finance cost												(3.8)
Profit before taxation												19.9
Taxation charge												(5.3)
Profit for the period attributable to equity holders												14.6
All of the above revenues are generated in the United Kingdom, with the exception of £17.8 million generated within the Republic of Ireland.
									HORECA	Workwear	All Other Segments	Total
									£m	£m	£m	£m
Balance sheet information
Segment assets									404.3	162.2	2.1	568.6
Unallocated assets:                  Post-employment benefit												6.7
Current income tax assets												0.8
Cash and cash equivalents												11.5
Total assets												587.6
Segment liabilities									(100.2)	(40.3)	(9.0)	(149.5)
Unallocated liabilities: Bank borrowings												(110.5)
Derivative financial liabilities												(0.6)
Post-employment benefit obligations												(0.3)
Deferred income tax liabilities												(32.9)
Total liabilities												(293.8)
									HORECA	Workwear	All Other Segments	Total
									£m	£m	£m	£m
Other information
Non-current asset additions
- Property, plant and equipment									21.2	3.3	-	24.5
- Right of use assets (including reassessment / modification)									0.1	2.3	-	2.4
- Textile rental items									19.7	11.6	-	31.3
- Customer contracts									3.1	-	-	3.1
Depreciation and amortisation expense
- Property, plant and equipment									9.5	2.8	-	12.3
- Right of use assets									2.2	1.5	-	3.7
- Textile rental items									19.4	11.0	-	30.4
- Capitalised software									0.1	0.2	-	0.3
- Customer contracts and brands									4.0	-	-	4.0

 

 

With the exception of non-current assets of £17.0 million which were located in the Republic of Ireland, all non-current assets of the Group reside in the Group’s country of domicile, the United Kingdom.

 

2 SEGMENT ANALYSIS (continued)

Year ended 31 December 2025															HORECA					Workwear				All Other Segments				Total
															£m					£m				£m				£m
Revenue
Rendering of services															389.5						141.9				-			531.4
Sale of goods															0.3						3.7				-			4.0
Total revenue															389.8						145.6				-			535.4
Cost of Sales															(227.9)						(87.9)				-			(315.8)
Distribution costs															(64.3)						(20.9)				-			(85.2)
Administrative costs															(37.8)						(15.8)				(8.3)			(61.9)
Operating profit / (loss) before amortisation of intangible assets (excluding software amortisation) and exceptional items																59.8					21.0					(8.3)		72.5
Amortisation of intangible assets (excluding software amortisation)																(7.7)					-					-		(7.7)
Exceptional items																(2.1)					(1.8)					(2.1)		(6.0)
Operating profit / (loss)																50.0					19.2					(10.4)		58.8
Net finance cost																												(8.0)
Profit before taxation																												50.8
Taxation charge																												(13.8)
Profit for the period from continuing operations																												37.0
Profit for the period from discontinued operations																												0.1
Profit for the period attributable to equity holders																												37.1
All of the above revenues are generated in the United Kingdom, with the exception of £37.5 million generated within the Republic of Ireland.
															HORECA					Workwear				All Other Segments				Total
															£m					£m				£m				£m
Balance sheet information
Segment assets															397.2					164.2				1.8				563.2
Unallocated assets:  Post-employment benefit assets																												4.9
Current income tax assets																												0.4
Cash and cash equivalents																												11.0
Total assets																												579.5
Segment liabilities															(99.4)					(39.8)				(3.4)				(142.6)
Unallocated liabilities: Bank borrowings																												(123.4)
Derivative financial liabilities																												(0.3)
Post-employment benefit obligations																													(0.3)
Deferred income tax liabilities																												(37.8)
Total liabilities																												(304.4)
															HORECA					Workwear				All Other Segments				Total
															£m					£m				£m				£m
Other information
Non-current asset additions
- Property, plant and equipment															28.3					5.3				-				33.6
- Right of use assets (including reassessment / modifications)															3.7					2.9				0.4				7.0
- Textile rental items															42.6					27.2				-				69.8
- Customer contracts															3.4					-				-				3.4
Depreciation, impairment and amortisation expense
- Property, plant and equipment															19.3					5.8				-				25.1
- Right of use assets depreciation															4.8					2.8				0.1				7.7
- Textile rental items depreciation															38.9					22.3				-				61.2
- Capitalised software															0.1					0.2				-				0.3
- Customer contracts															7.7					-				-				7.7

With the exception of non-current assets of £18.0 million which were located in the Republic of Ireland, all non-current assets of the Group reside in the Group’s country of domicile, the United Kingdom.

 

3 EXCEPTIONAL ITEMS

	Half year to 30 June 2026 £m	Half year to 30 June 2025 £m	Year ended  31 December 2025 £m
Costs in relation to business acquisition activity	(0.4)	-	(0.5)
Reorganisation costs	(0.2)	(0.7)	(3.4)
Costs in relation to Main Market listing	-	(0.3)	(1.7)
Insurance claims	-	-	(0.4)
Total exceptional items	(0.6)	(1.0)	(6.0)

 

Current year exceptional items

Costs in relation to business acquisition activity

The cost increases being experienced across UK businesses are encouraging some of our smaller, independent competitors to review their business strategy which, as a result, allowed us to add contracts with an annualised revenue of over £5.0 million to our HORECA division during the period. Professional and transitional service fees of £0.3 million were incurred in relation to those contract acquisitions. A further £0.1 million was incurred in respect of other business acquisition related activities.

 

Reorganisation costs

£0.2 million of reorganisation costs have been incurred across the Group during the period.

 

Prior year exceptional items

Costs in relation to business acquisition activity

In the prior period, we added contracts with an annualised revenue of some £4.9 million to our HORECA division during the year. Professional and transitional service fees of £0.3 million were incurred in relation to those contract acquisitions. A further £0.2 million was incurred in respect of other business acquisition related activities.

 

Reorganisation costs

The project to relocate our Workwear operations from Lancaster to Manchester, and the subsequent closure of the Lancaster site, resulted in the recognition of £1.4 million of reorganisation costs during the prior year, of which £0.3 million was recognised in the half year to 30 June 2025.

 

Reorganisation costs of £0.9 million were incurred during the period in relation to the contract acquisitions referred to above, of which £0.4 million was recognised in the half year to 30 June 2025. 

 

A further £1.1 million of reorganisation costs were incurred across the Group during the prior year.

 

Costs in relation to Main Market listing

Costs of £1.7 million were incurred during the prior year in relation to the Company’s ordinary shares being admitted to the Equity Shares (Commercial Companies) Category of the Official List of the Financial Conduct Authority and to trading on the Main Market of the London Stock Exchange, which occurred on 1 August 2025, of which £0.3 million was recognised in the half year to 30 June 2025. 

 

Insurance claims

At the end of June 2025, our small industrial workwear processing unit in Bristol suffered a fire which rendered part of the site inoperable. Costs of £0.4 million were recognised within exceptional items. In accordance with UK-adopted international accounting standards, related insurance proceeds will be recognised when it is deemed virtually certain that they will be received.

 

 

 

4 NET FINANCE COST

	Half year to 30 June 2026 £m		Half year to 30 June 2025 £m	Year ended 31 December 2025 £m
Interest payable on bank loans and overdrafts	(2.8)		(2.4)	(5.2)
Amortisation of bank facility fees	(0.2)		(0.2)	(0.4)
Finance costs on IFRS 16 lease liabilities		(1.6)	(1.3)	(2.6)
Finance cost	(4.6)		(3.9)	(8.2)
Notional interest income on post-employment benefit obligations	0.1		0.1	0.2
Finance income	0.1		0.1	0.2
Net Finance cost	(4.5)		(3.8)	(8.0)

 

 

5 ALTERNATIVE PERFORMANCE MEASURES (APMs)

 

 

Adjusted profit before and after taxation (continuing)	Half year to 30 June 2026 £m		Half year to 30 June 2025 £m	Year ended 31 December 2025 £m
Profit before taxation (continuing)	20.8		19.9	50.8
Amortisation of intangible assets (excluding software amortisation)		3.9	4.0	7.7
Exceptional items	0.6		1.0	6.0
Adjusted profit before taxation (continuing)	25.3		24.9	64.5
Taxation thereon	(6.2)		(6.0)	(15.6)
Adjusted profit after taxation (continuing)	19.1		18.9	48.9

 

 

Adjusted EBITDA	Half year to 30 June 2026 £m		Half year to 30 June 2025 £m	Year ended 31 December 2025 £m
Operating profit before amortisation of intangible assets (excluding software amortisation) and exceptional items	29.8		28.7	72.5
Software amortisation		-	0.3	0.3
Property, plant and equipment depreciation	13.4		12.3	25.1
Right of use asset depreciation	3.7		3.7	7.7
Textile rental items depreciation	31.0		30.4	61.2
Adjusted EBITDA	77.9		75.4	166.8

 

 

 

6 DIVIDENDS

 

	Half year to 30 June 2026	Half year to 30 June 2025	Year ended 31 December 2025
Dividend per share (pence)
2026 Interim dividend declared	1.8	-	-
2025 Interim dividend declared and paid	-	1.6	1.6
2025 Final dividend proposed and paid	-	-	3.2
	1.8	1.6	4.8

 

	Half year to 30 June 2026	Half year to 30 June 2025	Year ended 31 December 2025
Shareholders’ funds committed (£m)
2026 Interim dividend declared	6.5	-	-
2025 Interim dividend declared and paid	-	6.3	6.3
2025 Final dividend declared and paid	-	-	12.2

 

 

On 12 May 2026, a final dividend in respect of the year ended 31 December 2025 of 3.2 pence per share was paid to Shareholders, utilising £12.2 million of Shareholders’ funds.

 

The Directors are declaring an interim dividend in respect of the year ended 31 December 2026 of 1.8 pence per Ordinary share which, based on the number of shares in issue as at the date of this report, will reduce Shareholders’ funds by £6.5 million.  However, given the ongoing share buyback programme, it is anticipated that the actual distribution could be less than this amount.  The dividend will be paid on 6 November 2026 to Shareholders on the register of members at the close of business on 9 October 2026.  The trustee of the EST has waived the entitlement to receive dividends on the Ordinary shares held by the trust.

 

In accordance with IAS 10, there is no payable recognised at 30 June 2026 in respect of this proposed dividend.

 

 

7 TAXATION

	Half year to 30 June 2026 £m	Half year to 30 June 2025 £m	Year ended 31 December 2025 £m
Current tax
UK corporation tax charge for the period	2.5	2.0	5.9
Adjustment in relation to previous years	-	-	(0.3)
Current tax charge for the period	2.5	2.0	5.6
Deferred tax
Origination and reversal of temporary differences	3.4	3.3	7.9
Adjustment in relation to previous years	-	-	0.3
Deferred tax charge for the period	3.4	3.3	8.2
Total charge for taxation included in the Consolidated Income Statement for continuing operations	5.9	5.3	13.8

 

Taxation in relation to the amortisation of intangible assets (excluding software amortisation) has reduced the charge for taxation on continuing operations in the half year to 30 June 2026 by £0.3 million (June 2025: £0.5 million; December 2025: £0.9 million).  Taxation in relation to exceptional items has £nil impact on the charge for taxation on continuing operations (June 2025: £0.2 million; December 2025: £0.9 million).

 

During the half year to 30 June 2026, a £0.6 million charge relating to deferred taxation (June 2025: £0.6 million; December 2025: £0.5 million credit) has been recognised in other comprehensive income.  In addition, a £nil charge relating to deferred taxation (June 2025: £0.2 million; December 2025: £0.2 million) and £nil charge relating to current taxation (June 2025: £nil; December 2025; £0.1 million credit) has been recognised directly in reserves.

 

Reconciliation of effective tax rate

The main rate of corporation tax in the UK is 25.0%, whilst in the Republic of Ireland it is 12.5%.

 

Taxation on non-exceptional items for the half year to 30 June 2026 is calculated based on the estimated average annual effective tax rate of 24.5% (June 2025: 24.1%; December 2025: 25.8%).  The effective tax rate is impacted by a number of factors, including expenses not deductible for taxation, non-UK taxable profits and short-term timing differences, with first year capital allowances in the period reflecting full expensing relief impacting upon the estimated pattern of reversal of the Group’s deferred tax assets and liabilities.

 

 

8 EARNINGS PER SHARE

	Half year to 30 June 2026 £m	Half year to       30 June 2025 £m	Year ended 31 December               2025 £m
Profit for the period from continuing operations attributable to Shareholders	14.9	14.6	37.0
Amortisation of intangible assets from continuing operations (net of taxation)	3.6	3.5	6.8
Exceptional items from continuing operations (net of taxation)	0.6	0.8	5.1
Adjusted profit from continuing operations attributable to Shareholders	19.1	18.9	48.9
Profit from discontinued operations attributable to Shareholders	-	-	0.1
Total adjusted profit from all operations attributable to Shareholders	19.1	18.9	49.0
	Number of shares	Number of shares	Number of shares
Weighted average number of Ordinary shares	378,138,759	412,138,841	401,128,215
Potentially dilutive Ordinary shares	1,732,687	132,124	1,747,031
Diluted number of Ordinary shares	379,871,446	412,270,965	402,875,246
Basic earnings per share	Pence per share	Pence per share	Pence per share
From continuing operations	4.0p	3.6p	9.3p
From discontinued operations	-	-	-
From total operations	4.0p	3.6p	9.3p
Adjustment for amortisation of intangibles assets (continuing)	0.8p	0.8p	1.7p
Adjustment for exceptional items (continuing)	0.2p	0.2p	0.2p
Adjusted basic earnings per share (continuing)	5.0p	4.6p	12.2p
Adjusted basic earnings per share (discontinued)	-	-	-
Adjusted basic earnings per share from total operations	5.0p	4.6p	12.2p
Diluted earnings per share
From continuing operations	3.9p	3.6p	9.2p
From discontinued operations	-	-	-
From total operations	3.9p	3.6p	9.2p
Adjustments for amortisation of intangibles assets (continuing)	0.9p	0.8p	1.7p
Adjustment for exceptional items (continuing)	0.2p	0.2p	0.2p
Adjusted diluted earnings per share (continuing)	5.0p	4.6p	12.1p
Adjusted basic earnings per share (discontinued)	-	-	-
Adjusted diluted earnings per share from total operations	5.0p	4.6p	12.1p

 

 

Basic earnings per share is calculated using the weighted average number of Ordinary shares in issue during the period, excluding those held by the Employee Share Trust, based on the profit for the period attributable to Shareholders.

 

Adjusted earnings per share figures are given to exclude the effects of amortisation of intangible assets (excluding software amortisation) and exceptional items, all net of taxation, and are considered to show the underlying performance of the Group.

 

For diluted earnings per share, the weighted average number of Ordinary shares in issue is adjusted to assume conversion of all potentially dilutive Ordinary shares.  The Company has potentially dilutive Ordinary shares arising from share options granted to employees. Options are dilutive under the SAYE scheme, where the exercise price together with the future IFRS 2 charge of the option is less than the average market price of the Company’s Ordinary shares during the period. Options under the LTIP schemes, as defined by IFRS 2, are contingently issuable shares and are therefore only included within the calculation of diluted earnings per share if the performance conditions, as set out in the Directors’ Remuneration Report within the 2025 Annual Report and Accounts, are satisfied at the end of the reporting period, irrespective of whether this is the end of the vesting period or not.

 

Potentially dilutive Ordinary shares are dilutive at the point, from a continuing operations level, when their conversion to Ordinary shares would decrease earnings per share or increase loss per share.  For the periods ended 30 June 2026 and 30 June 2025, and the year ended 31 December 2025, potentially dilutive Ordinary shares have been treated as dilutive, as their inclusion in the diluted earnings per share calculation decreases the earnings per share from continuing operations.

 

Subsequent to the balance sheet date, the Company purchased and cancelled a further 10.7 million shares as part of its ongoing share buyback programme.  Had those shares been purchased at the balance sheet date, the weighted average number of Ordinary shares disclosed above would not have changed significantly.  There were no other events occurring after the balance sheet date that would have changed significantly the number of Ordinary shares or potentially dilutive Ordinary shares outstanding at the balance sheet date if those transactions had occurred before the end of the reporting period.

 

 

9 GOODWILL

​			As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
			£m	£m	£m
Cost
Brought forward			155.4	155.0	155.0
Impact of foreign exchange translation			(0.1)	0.2	0.4
			155.3	155.2	155.4
Impairment
Brought forward			1.4	1.4	1.4
Impairment			-	-	-
			1.4	1.4	1.4
Closing			153.9	153.8	154.0

 

In accordance with UK-adopted international accounting standards, goodwill is not amortised but instead is tested annually for impairment, or upon the existence of indicators of impairment per IAS 36, and carried at cost less accumulated impairment losses.

 

Management has reviewed the indicators of impairment per IAS 36 and do not believe that any have been triggered since 31 December 2025 and, as such, no impairment review has been carried out as at 30 June 2026.  In line with the requirements of IAS 36, a full impairment review will be performed during the second half of the year.

 

 

 

10 INTANGIBLE ASSETS

 

  Capitalised software

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening net book value	0.3	0.6	0.6
Amortisation	-	(0.3)	(0.3)
Closing net book value	0.3	0.3	0.3

 

 

Other intangible assets

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening net book value	24.6	28.4	28.4
Additions	4.4	3.1	3.4
Foreign exchange differences	(0.1)	0.3	0.5
Amortisation	(3.9)	(4.0)	(7.7)
Closing net book value	25.0	27.8	24.6
Total	25.3	28.1	24.9

 

Other intangible assets comprise the fair value of customer contracts and relationships and brands arising from business combinations, together with the fair value of customer contracts acquired not as part of a business combination.

 

11 PROPERTY, PLANT AND EQUIPMENT

 

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening net book value	168.9	160.0	160.0
Foreign exchange differences	(0.3)	0.4	0.6
Additions	20.2	24.5	33.6
Depreciation	(13.4)	(12.3)	(25.1)
Disposals	(0.1)	-	(0.2)
Closing net book value	175.3	172.6	168.9

 

The transfer of assets from right of use assets represents the reclassification of the cost of assets from right of use assets where the lease was repaid in the period and the asset is now owned. 

 

 

CAPITAL COMMITMENTS

 

The value of orders placed for future capital expenditure contracted but not provided for in the financial statements is shown below:

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Property, plant and equipment	14.6	4.7	10.3

 

 

 

12 RIGHT OF USE ASSETS

 

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening net book value	42.3	43.0	43.0
Additions	9.1	1.0	6.2
Reassessment/modifications of assets previously recognised	0.1	1.4	0.8
Depreciation	(3.7)	(3.7)	(7.7)
Closing net book value	47.8	41.7	42.3

 

 

 

13 TEXTILE RENTAL ITEMS

 

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening net book value	80.0	73.4	73.4
Foreign exchange differences	-	-	0.1
Additions	27.5	31.3	69.8
Depreciation	(31.0)	(30.4)	(61.2)
Special charges	(0.8)	(1.0)	(2.1)
Closing net book value	75.7	73.3	80.0

 

 

14 POST-EMPLOYMENT BENEFITS

 

The Group has applied the requirements of IAS 19, ‘Employee Benefits’ to its employee pension schemes and post-employment healthcare benefits.

 

In the half year to 30 June 2026, no deficit recovery payments were paid by the Group to the defined benefit scheme (June 2025: £nil; December 2025: £nil).

 

Following discussions with the Group’s appointed actuary, a re-measurement gain of £2.6 million has been recognised in the half year to 30 June 2026.  The improvement in the position from 31 December 2025 is mainly driven by an increase in the discount rate assumption, due to increases in corporate bond yields, offset with a slight decrease in the inflation rate assumption.

 

The post-employment benefit asset and associated deferred income tax liability thereon are shown below:

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Post-employment benefit asset	7.4	6.4	4.6
Deferred income tax liability thereon	(1.9)	(1.6)	(1.2)
	5.5	4.8	3.4

 

 

The reconciliation of the opening gross post-employment benefit asset to the closing gross post-employment benefit asset is shown below:

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Opening post-employment benefit asset	4.6	3.5	3.5
Notional interest	0.1	0.1	0.2
Re-measurement and experience gains	2.6	2.8	0.9
Post-retirement Healthcare benefits movement	0.1	-	-
Closing post-employment benefit surplus	7.4	6.4	4.6

 

 

Post-employment benefit assets / (obligations) are comprised of the following balance sheet amounts:

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Post-employment benefit assets (Non-current assets)	7.6	6.7	4.9
Post-employment benefit obligations (Non-current liabilities)	(0.2)	(0.3)	(0.3)
	7.4	6.4	4.6

 

 

 

15 SHARE CAPITAL

 

Issued share capital is as follows:

	Half year to 30 June 2026	Half year to 30 June 2025	Year ended 31 December 2025
	£m	£m	£m
Share capital at the start of the period	37.8	41.5	41.5
New shares issued	0.2	0.2	0.1
Share buyback	(0.8)	(1.2)	(3.8)
Share capital at the end of the period	37.2	40.5	37.8

 

In September 2025, the Group commenced a share buyback programme to repurchase up to £25.0 million (excluding expenses) of its own shares.  This programme was still in operation at the start of the period. During the period to 30 June 2026, 505,437 Ordinary shares with a total nominal value of £50,544 were bought back and immediately cancelled as part of this programme for a total consideration, including transaction costs of £0.7 million.

 

In May 2026, the Group commenced a further share buyback programme to repurchase up to £55.0 million (excluding expenses) of its own shares.  During the period to 30 June 2026, 7,893,309 Ordinary shares with a total nominal value of £789,331 were bought back, and immediately cancelled, by the Company for a total consideration, including transaction costs, of £12.0 million.  The 7,893,309 Ordinary shares repurchased as part of the share buyback programme represents 2.1% of the Company’s share capital in issue prior to commencement of the share buyback programme.

 

 

 

16 BUSINESS COMBINATIONS

There have been no business combinations in the half year to 30 June 2026.

 

 

 

17 BORROWINGS

 

At 30 June 2026, borrowings were secured and drawn down under a committed facility dated 2 April 2026.  The facility comprised of a £175.0 million rolling credit facility (including two net overdraft facilities for £5.0 million and £3.0 million) which runs to April 2030, and options, subject to bank consent, to extend the term by a further year and to increase the facility by up to an additional £50.0 million.

 

Individual tranches are drawn down, in Sterling or Euros, for periods of up to six months at SONIA or Euribor rates of interest, as applicable, prevailing at the time of drawdown, plus the credit adjustment spread and the applicable margin.  The margin on the facility ranges between 1.30% and 2.30%.  Margin is determined on the achievement of leverage ratios.

 

The secured bank loans are stated net of unamortised issue costs of £1.3 million (30 June 2025: £0.3 million; 31 December 2025: £0.1 million) of which £0.5 million is included within current borrowings (30 June 2025: £0.2 million; 31 December 2025: £0.1 million) and £0.8 million is included within non-current borrowings (30 June 2025: £0.1 million; 31 December 2025: £nil).  Details of the security are provided in note 21.

 

Amounts drawn under the revolving credit facility have been classified as either current or non-current depending upon when the loan is expected to be repaid.

 

 

18 ANALYSIS OF NET DEBT

 

Net debt is calculated as total borrowings, net of unamortised bank facility fees, less cash and cash equivalents.  Non-cash changes represent the effects of the recognition and subsequent amortisation of fees relating to the bank facility, changing maturity profiles, debt acquired as part of an acquisition and the recognition of lease liabilities entered into during the period.

 

June 2026		At 1 January 2026	Cash Flow	Non-cash Changes	Foreign Exchange Adjustments	At 30 June 2026
		£m	£m	£m	£m	£m
Debt due within one year		0.1	-	0.4	-	0.5
Debt due after more than one year		(114.4)	(19.5)	0.4	0.4	(133.1)
Lease liabilities		(46.8)	3.1	(9.0)	-	(52.7)
Total debt and lease financing		(161.1)	(16.4)	(8.2)	0.4	(185.3)
Cash and cash equivalents		1.9	(5.3)	-	0.1	(3.3)
Net debt		(159.2)	(21.7)	(8.2)	0.5	(188.6)

 

 

June 2025			At 1 January 2025		Cash Flow		Non-cash Changes		Foreign Exchange Adjustments		At 30 June 2025
			£m		£m		£m		£m		£m
Debt due within one year			0.4		-		(0.2)		-		0.2
Debt due after more than one year			(71.2)		(29.5)		-		(1.0)		(101.7)
Lease liabilities			(47.0)		3.4		(2.4)		-		(46.0)
Total debt and lease financing			(117.8)		(26.1)		(2.6)		(1.0)		(147.5)
Cash and cash equivalents			2.2		0.1		-		0.2		2.5
Net debt			(115.6)		(26.0)		(2.6)		(0.8)		(145.0)
December 2025				At 1 January 2025		Cash Flow		Non-cash Changes		Foreign Exchange Adjustments		At                  31 December 2025
				£m		£m		£m		£m		£m
Debt due within one year				0.4		-		(0.3)		-		0.1
Debt due after more than one year				(71.2)		(41.5)		(0.1)		(1.6)		(114.4)
Lease liabilities				(47.0)		7.1		(6.9)		-		(46.8)
Total debt and lease financing				(117.8)		(34.4)		(7.3)		(1.6)		(161.1)
Cash and cash equivalents				2.2		(0.6)		-		0.3		1.9
Net debt				(115.6)		(35.0)		(7.3)		(1.3)		(159.2)

 

 

	As at      30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Net debt	(188.6)	(145.0)	(159.2)
Add back: IFRS 16 lease liabilities	52.7	46.0	46.8
Net debt excluding IFRS 16 lease liabilities	(135.9)	(99.0)	(112.4)

 

 

18 ANALYSIS OF NET DEBT (continued)

 

The cash and cash equivalents figures are comprised of the following balance sheet amounts:

 

	As at      30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Cash (Current assets)	6.4	11.5	11.0
Overdraft (Borrowings, Current liabilities)	(9.7)	(9.0)	(9.1)
	(3.3)	2.5	1.9

 

Lease liabilities are comprised of the following balance sheet amounts:

 

	As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
	£m	£m	£m
Amounts due within one year (Lease liabilities, Current liabilities)	(9.3)	(6.8)	(7.4)
Amounts due after more than one year (Lease liabilities, Non-current liabilities)	(43.4)	(39.2)	(39.4)
	(52.7)	(46.0)	(46.8)

 

 

 

19           RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

 

	Half year to 30 June 2026	Half year to 30 June 2025	Year ended 31 December 2025
	£m	£m	£m
(Decrease) / increase in cash in the period	(5.3)	0.1	(0.6)
Increase in debt and lease financing	(16.4)	(26.1)	(34.4)
Change in net debt resulting from cash flows	(21.7)	(26.0)	(35.0)
Debt acquired through purchase of customer contracts	(0.4)	-	-
Lease liabilities recognised during the period	(9.0)	(2.4)	(6.9)
Non-cash movement in unamortised bank facility fees	1.2	(0.2)	(0.4)
Foreign exchange adjustments	0.5	(0.8)	(1.3)
Movement in net debt during the period	(29.4)	(29.4)	(43.6)
Opening net debt	(159.2)	(115.6)	(115.6)
Closing net debt	(188.6)	(145.0)	(159.2)

 

 

 

20            RELATED PARTY TRANSACTIONS

 

Transactions during the period between the Company and its subsidiaries, which are related parties, have been conducted on an arm’s length basis and eliminated on consolidation.  Full details of the Group’s related party relationships, transactions and balances are given in the Group’s Annual Report and Accounts for the year ended 31 December 2025.  There have been no material changes in these relationships in the half year to 30 June 2026 or up to the date of this Report.  Transactions with related parties have not had, and are not expected to have, a material effect on the financial performance or position of the Group.

 

 

 

21 CONTINGENT LIABILITIES

 

The Group operates from a number of sites across the UK and the Republic of Ireland.  Some of the sites have operated as laundry sites for many years and historic environmental liabilities may exist.  Such liabilities are not expected to give rise to any significant loss.

 

The Group has granted its Bankers and Trustee of the Pension Scheme (the ‘Trustee’) security over the assets of the Group.  The priority of security is as follows:

 

• first ranking security for £28.0 million to the Trustee ranking pari passu with up to £155.0 million of bank liabilities; and
• second ranking security for the balance of any remaining liabilities to the Trustee ranking pari passu with any remaining bank liabilities.

 

 

21 CONTINGENT LIABILITIES (continued)

 

During the period of ownership of the Facilities Management division, the Company had given guarantees over the performance of certain contracts entered into by the division.  As part of the disposal of the division, the purchaser agreed to pursue the release or transfer of obligations under the guarantees and this remains in process.  The sale and purchase agreement contains an indemnity from the purchaser to cover any loss in the event a claim is made prior to release.  In the period until release, the purchaser is to make a payment to the Company of £0.2 million per annum, reduced pro rata as guarantees are released.  Such liabilities are not expected to give rise to any significant loss.

 

 

 

22 EVENTS AFTER THE REPORTING PERIOD

 

Subsequent to the balance sheet date, the Company purchased and cancelled a further 10.7 million shares as part of its ongoing share buyback programme. 

 

There have been no other events that require disclosure in accordance with IAS10, ‘Events after the balance sheet date’.

 

 

 

23 PRINCIPAL RISKS AND UNCERTAINTIES

 

Approach to Risk Management

The Board has overall accountability for ensuring that risk is effectively managed across the Group and, on behalf of the Board, the Audit Committee coordinates and reviews the effectiveness of the Group’s risk management process. 

 

Risks are reviewed by all of our businesses on an ongoing basis and are measured against a defined set of likelihood and impact criteria.  This is captured in consistent reporting formats enabling the Audit Committee to review and consolidate risk information and summarise the principal risks and uncertainties facing the Group.  Wherever possible, action is taken to mitigate, to an acceptable level, the potential impact of identified principal risks and uncertainties.

 

The Board formally reviews the most significant risks facing the Group at its March and August meetings, or more frequently should new matters arise.  Throughout 2026 to date, the overall risk environment remained largely unchanged from that reported within the Group’s 2025 Annual Report.

 

Risk Appetite

The Board interprets appetite for risk as the level of risk that the Group is willing to take in order to meet its strategic goals.  The Board communicates its approach to, and appetite for, risk to the business through the strategy planning process and the internal risk governance and control frameworks.  In determining its risk appetite, the Board recognises that a prudent and robust approach to risk assessment and mitigation must be carefully balanced with a degree of flexibility so that the entrepreneurial spirit which has greatly contributed to the success of the Group is not inhibited.  Both the Board and the Audit Committee remain satisfied that the Group’s internal risk control framework continues to provide the necessary element of flexibility without compromising the integrity of risk management and internal control systems.

 

Emerging Risks

The Board has established processes for identifying emerging risks, and horizon scanning for risks that may arise over the medium to long term.  Emerging and potential changes to the Group’s risk profile are identified through the Group’s risk governance frameworks and processes, and through direct feedback from management, including changing operating conditions, market and consumer trends.

 

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the Group are summarised below:

 

Economic and Political Conditions Cost Inflation Failure of Strategy Recruitment, Retention and Motivation of Employees Loss of a Processing Facility Competition and Disruption Information Systems and Technology

Pandemic or Other National Crisis Health & Safety Compliance and Fraud Insufficient Processing Capacity Customer Sales and Retention Climate Change and Energy Costs

 

Full details of the above risks, together with details on how the Board takes action to mitigate each risk, were provided in our 2025 Annual Report.  These risks and uncertainties do not comprise all of the risks that the Group may face and are not necessarily listed in any order of priority.  Additional risks and uncertainties not presently known to the Board, or deemed to be less material, may also have an adverse effect on the Group.

 

In accordance with the provisions of the UK Corporate Governance Code, the Board has taken into consideration the principal risks and uncertainties in the context of determining whether to adopt the going concern basis of preparation and when assessing the future prospects of the Group.

 

 

 

24 PUBLISHED FINANCIAL STATEMENTS

 

There is no regulatory requirement to send out half-yearly reports to all Shareholders or to advertise the content in a national newspaper.  In order to reduce costs, the Company has taken advantage of this reporting regime and no longer publishes half-yearly reports for individual circulation to Shareholders.  Information that would normally be included in a half-yearly report is made available on the Company’s website at www.jsg.com.