Shares of Runcorn-based workwear and textile firm Johnson Service Group (JSG) fell as much as 17% on Friday after it published a trading update for the six months ended June 30, 2026.
Johnson said group revenue for the six months is expected to be in line with the prior year at £258.0 million (2025: £257.5 million).
Net debt was £190.0 million (December 2025: £159.2 million), “reflective of the timing of dividend payments, the Buyback Programme, working capital movements and capital expenditure, with leverage towards the lower end of our target range.”
The firm said: “Revenue in our Workwear business is expected to be £74.0 million (2025: £72.1 million), whilst revenue in HORECA (Hotel, Restaurant and Catering) is expected to be £184.0 million (2025: £185.4 million),” said the firm.
“Group organic revenue in the six months to 30 June 2026 softened slightly to approximately (0.7%). Organic revenue growth within Workwear is expected to be 2.6%, largely reflective of the successful implementation of price increases.
“HORECA organic revenue performance was approximately (2.0%), reflecting the previously highlighted challenges within hospitality across the UK and Republic of Ireland; we anticipate that normal seasonality will support improved volumes over the remaining summer months.
“Across both divisions, we continue to maintain a pricing discipline that reflects the quality and reliability of the service that we provide.
“Whilst this has resulted in market churn in certain instances, we continue to see customers choose, and return to, us in recognition of the strength and value of our service proposition.
“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.
“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.
“For 2026, the Group has fixed pricing in place for approximately 85% of its anticipated electricity usage and 90% of its anticipated gas usage and has also hedged approximately 70% of its anticipated diesel requirement.
“Looking ahead to 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. We will lock-in further prices on a rolling basis, in line with our established policy.
“We are pleased with the expected margin progression in the first half of the year, which reflects our strong focus on operational cost management.”
In its outlook, Johnson said workwear revenue remains stable, with customer retention and the implementation of price increases expected to benefit performance in the second half.
“Although volumes within HORECA in the first half of the year reflected the challenging trading environment within hospitality, we expect normal seasonality to support improved volumes over the remaining summer months,” added the firm.