Johnson Service launches GBP55 million buyback and backs margin target

(Alliance News) - Johnson Service Group PLC on Thursday announced a GBP55 million share buyback as it reported a modest increase in first quarter sales.

The Cheshire, England-based textile rental business said the buyback will end no later than March 1 next year.

Johnson Service said it has "significant headroom" under its recently increased GBP175.0 million committed revolving credit facility and considers the buyback to be "prudent".

In addition, the company said revenue in the first three months of the year increased by 1.4% to GBP123.0 million from GBP121.4 million a year ago, with organic revenue growth contributing 0.7%.

Johnson Service continues to "proactively" manage ongoing cost inflation pressures and has fixed the majority of 2026 energy costs, it said.

Looking ahead to 2027, the company has fixed around 60% and 70% of anticipated electricity and gas usage, respectively, and will lock-in further prices as "opportunities allow".

"We have yet to see any material impact of the ongoing geopolitical uncertainty in the Middle East, the intensity or duration of which we are unable to predict. Given what we know currently, we expect any cost consequences in 2026 to be manageable," Johnson Service added.

It remains on track towards achieving an adjusted operating margin of at least 14.0% in 2026.

The stock was up 4.7% to 137.40 pence each in London on Thursday for a GBP521.9 million market capitalisation.

By Jeremy Cutler, Alliance News reporter

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