Runcorn-based workwear and textile firm Johnson Service Group (JSG) said its group revenue in the six months to June 30, 2025, is expected to have increased 5.5% to £257.6 million.

However, Johnson said its HORECA business (Hotel, Restaurant and Catering) had experienced a slower than anticipated start to the summer months.

The firm’s shares fell about 5%.

In a trading update, Johnson said: “Group revenue in the six months to 30 June 2025 is expected to have increased by 5.5% to £257.6 million (2024: £244.1 million), with revenue increasing in HORECA (Hotel, Restaurant and Catering) to £185.4 million (2024: £172.9 million) and in Workwear to £72.2 million (2024: £71.2 million). 

“On an organic basis, Group revenue is expected to have increased by 1.4% on 2024 levels.

“In addition, we are pleased with the margin achieved in the first half of 2025 and remain on track towards the targeted margin of at least 14.0% by 2026.

“Whilst HORECA experienced a slower than anticipated start to the summer months, reflecting the current challenges in the wider hospitality market, we have started to see a slight improvement in volumes in the last two weeks, but are mindful that future consumer discretionary spend remains unpredictable. 

“Workwear volumes have been stable, with strong new installations in June and retention rates continuing to trend positively. Operating costs are being closely managed across the group, in particular ahead of the build up to the anticipated busy summer period in HORECA.

“Bank debt (excluding IFRS 16 liabilities) was approximately £99.0 million at 30 June 2025 and includes an outflow of £16.8 million in respect of the ongoing share buyback. 

“As at 9 July 2025, we have returned £23.0 million to shareholders out of the current £30.0 million programme.  We expect bank debt to reduce in the second half in the absence of any further significant capital deployment.

“The board is confident that 2025 will be another year of progress in revenue and margin growth.

“The results for the six months to 30 June 2025 will be announced on 2 September 2025.”