# Johnson Service Group (JSG.LSE)

Canonical: https://gigainvestors.com/s/JSG.LSE

Analysis as of: 2026-10-16T07:45:47.983Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 140.00 per share; close as of 2026-10-15.

Estimated value: low GBX 87.20 per share, central GBX 99.21 per share, high GBX 115.20 per share. Buy at or below the central value GBX 99.21 per share. Valuation as of 2026-10-16T07:45:47.983Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 1.68×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.12×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: -0.12×

- FY2021: 0.03×

- FY2022: 0.09×

- FY2023: 0.10×

- FY2024: 1.00×

- FY2025: 0.12×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 17.0%

- ROIC, second-lowest year: 4.3%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 39.3%

- Recent gross margin (lower of latest and 3-year median): 38.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 19.7%

- ROIC including acquisitions, ten-year median: 8.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.9%

- FY2017: 20.9%

- FY2018: 18.7%

- FY2019: 16.9%

- FY2020: -13.6%

- FY2021: 4.3%

- FY2022: 16.3%

- FY2023: 13.7%

- FY2024: >100%

- FY2025: 17.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.39×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 188M

- Net income, five-year total: GBP 136M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: -3.5 pp

- Working capital / revenue, final three-year average: 4.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.15×

- FY2022: 2.39×

- FY2023: 0.68×

- FY2024: 2.05×

- FY2025: 0.76×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.9% vs 17.1%

- Per-share earnings: 0.06 to 0.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.3%

- Ordinary dilution, 5-year annual growth: -1.9%

- Market cap gain: GBP 121M

- Cumulative retained earnings: GBP 117M

- Diluted shares, 10-year annual growth: 1.3%

- Diluted shares, 5-year annual growth: -1.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.4%

- Per-share value change: GBP 0.03

- Per-share value, starting three-year median: GBP 0.06

- Per-share value, ending three-year median: GBP 0.09

- Buybacks concentrated in cheaper years (correlation): 0.90

- Average buyback yield: 3.3%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 124M

- Cumulative net income, 10 years: GBP 213M

- ROIC, first three-year median: 18.9%

- ROIC, last three-year median: 17.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.06

- FY2017: GBP 0.07

- FY2018: GBP 0.14

- FY2019: GBP 0.08

- FY2020: GBP -0.06

- FY2021: GBP 0.01

- FY2022: GBP 0.07

- FY2023: GBP 0.06

- FY2024: GBP 0.09

- FY2025: GBP 0.09

### accounting: pass

- Sloan accruals: -17.7%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.77×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.65×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -14.5%

- FY2017: -14.4%

- FY2018: -14.5%

- FY2019: -17.3%

- FY2020: -23.9%

- FY2021: -9.2%

- FY2022: -15.1%

- FY2023: -18.5%

- FY2024: -18.9%

- FY2025: -17.7%

## Holders

## Price story

Price needs cash profits to grow 5.2% a year for ten years · sales +4.3%

Story as of 2026-10-16T10:00:13.508Z; price observation 2026-10-15.

Price needs cash profits to grow 5.2% a year for ten years

### Sales · FY2024–2025

sales +4.3%; source https://filings.xbrl.org/2138004WZUPWV53KWV11/2025-12-31/ESEF/GB/0/2138004WZUPWV53KWV11-2025-12-31/reports/2138004WZUPWV53KWV11-2025-12-31-T01.xhtml; observed 2026-03-24.

- FY2016: GBP 257M 

- FY2017: GBP 291M 

- FY2018: GBP 321M 

- FY2019: GBP 351M 

- FY2020: GBP 230M 

- FY2021: GBP 271M 

- FY2022: GBP 386M 

- FY2023: GBP 465M 

- FY2024: GBP 513M 

- FY2025: GBP 535M 

### Gross margin · FY2025

gross margin 38.1%; source https://filings.xbrl.org/2138004WZUPWV53KWV11/2025-12-31/ESEF/GB/0/2138004WZUPWV53KWV11-2025-12-31/reports/2138004WZUPWV53KWV11-2025-12-31-T01.xhtml; observed 2026-03-24.

- FY2016: 40.7% 

- FY2017: 41.6% 

- FY2018: 40.5% 

- FY2019: 40.7% 

- FY2020: 24.1% 

- FY2021: 29.9% 

- FY2022: 35.0% 

- FY2023: 35.9% 

- FY2025: 38.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are GBP 535.4 million.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2025-12-31 (filed 2026-03-24); FY2025: revenue 535400000; grossProfit 203900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JSG.LSE: Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom and Ireland. The company provides workwear and protective wear rental; and workplace hygiene services under the Johnsons Workwear brands, as well as provides laundry services. It offers linen services through the Johnsons Hotel Linen; Johnsons Hotel, Restaurant and Catering Linen by Stalbridge; Johnsons Restaurant & Catering Linen by London Linen; Regency and Empire; Johnsons Belfast; and Celtic Linen brand names. The company engages in property holding activities. Johnson Service Group PLC was incorporated in 1953 and is headquartered in Preston Brook, the United Kingdom.

### Why customers stay

Margins ranged from 35.9% to 100% during 2023–25; it earns 17% on its capital.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2023-12-31 (filed 2026-03-24); FY2023: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2024-12-31 (filed 2026-03-24); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2025-12-31 (filed 2026-03-24); FY2025: grossProfit / revenue = 38.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); 10-year return on capital observations [[2016,0.1885974644595334],[2017,0.20866888827177635],[2018,0.18742773778615837],[2019,0.16917786351449596],[2020,-0.13643174603174604],[2021,0.04257475924987329],[2022,0.16255951550889494],[2023,0.13707242567399566],[2024,1.4326335793660299],[2025,0.1709782269759969]]; median 0.17007804524524645. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.7% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2016-12-31 (filed 2026-03-24); FY2016: growth capex 0; upkeep 50000000; owner earnings 20800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2017-12-31 (filed 2026-03-24); FY2017: growth capex 2600000; upkeep 57000000; owner earnings 25700000. Growth capex / owner earnings = 0.10116731517509728.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2018-12-31 (filed 2026-03-24); FY2018: growth capex 2800000; upkeep 64200000; owner earnings 26800000. Growth capex / owner earnings = 0.1044776119402985.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2019-12-31 (filed 2026-03-24); FY2019: growth capex 0; upkeep 22300000; owner earnings 76820000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2022-12-31 (filed 2026-03-24); FY2022: growth capex 0; upkeep 23700000; cash acquisitions 0; owner earnings 69340000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2023-12-31 (filed 2026-03-24); FY2023: growth capex 6700000; upkeep 86300000; cash acquisitions 29700000; owner earnings 18660000. Growth capex plus acquisitions / owner earnings = 1.9506966773847803.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2024-12-31 (filed 2026-03-24); FY2024: growth capex 0; upkeep 50600000; cash acquisitions 19600000; owner earnings 73100000. Growth capex plus acquisitions / owner earnings = 0.26812585499316005.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2025-12-31 (filed 2026-03-24); FY2025: growth capex 0; upkeep 101600000; cash acquisitions 200000; owner earnings 28140000. Growth capex plus acquisitions / owner earnings = 0.007107320540156361.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Dividend observations: [[2016,7700000],[2017,9500000],[2018,10700000],[2019,12000000],[2020,3500000],[2021,33000000],[2022,3500000],[2023,10600000],[2024,13300000],[2025,17400000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/JSG.LSE.json#2025-12-31 (filed 2026-03-24); FY2025: cash repurchases 54800000 GBP.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JSG.LSE SharesStats.PercentInsiders = 1.239 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.2% yearly over ten years; actual growth was 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Ten-year compound average after fade. Initial solved rate 0.061718790591720585. Price 140; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.03712726128225747 → FY2025 0.0698479250819992. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 105.25 per share

- 2016-11: GBX 108.25 per share

- 2016-12: GBX 114.75 per share

- 2017-01: GBX 114.25 per share

- 2017-02: GBX 113.75 per share

- 2017-03: GBX 118.25 per share

- 2017-04: GBX 129.00 per share

- 2017-05: GBX 125.00 per share

- 2017-06: GBX 128.75 per share

- 2017-07: GBX 132.50 per share

- 2017-08: GBX 135.00 per share

- 2017-09: GBX 147.50 per share

- 2017-10: GBX 145.00 per share

- 2017-11: GBX 137.00 per share

- 2017-12: GBX 144.00 per share

- 2018-01: GBX 140.00 per share

- 2018-02: GBX 139.20 per share

- 2018-03: GBX 135.40 per share

- 2018-04: GBX 139.00 per share

- 2018-05: GBX 130.00 per share

- 2018-06: GBX 137.80 per share

- 2018-07: GBX 137.20 per share

- 2018-08: GBX 140.20 per share

- 2018-09: GBX 135.00 per share

- 2018-10: GBX 129.40 per share

- 2018-11: GBX 120.00 per share

- 2018-12: GBX 117.00 per share

- 2019-01: GBX 132.20 per share

- 2019-02: GBX 128.00 per share

- 2019-03: GBX 139.00 per share

- 2019-04: GBX 152.00 per share

- 2019-05: GBX 160.00 per share

- 2019-06: GBX 149.00 per share

- 2019-07: GBX 172.80 per share

- 2019-08: GBX 165.60 per share

- 2019-09: GBX 174.00 per share

- 2019-10: GBX 177.80 per share

- 2019-11: GBX 179.80 per share

- 2019-12: GBX 196.00 per share

- 2020-01: GBX 210.00 per share

- 2020-02: GBX 183.00 per share

- 2020-03: GBX 103.20 per share

- 2020-04: GBX 124.20 per share

- 2020-05: GBX 118.40 per share

- 2020-06: GBX 115.60 per share

- 2020-07: GBX 93.10 per share

- 2020-08: GBX 106.60 per share

- 2020-09: GBX 90.00 per share

- 2020-10: GBX 87.30 per share

- 2020-11: GBX 136.00 per share

- 2020-12: GBX 140.00 per share

- 2021-01: GBX 132.40 per share

- 2021-02: GBX 164.80 per share

- 2021-03: GBX 148.80 per share

- 2021-04: GBX 155.80 per share

- 2021-05: GBX 170.20 per share

- 2021-06: GBX 175.40 per share

- 2021-07: GBX 155.60 per share

- 2021-08: GBX 147.80 per share

- 2021-09: GBX 150.40 per share

- 2021-10: GBX 132.80 per share

- 2021-11: GBX 129.00 per share

- 2021-12: GBX 147.60 per share

- 2022-01: GBX 151.20 per share

- 2022-02: GBX 158.60 per share

- 2022-03: GBX 117.80 per share

- 2022-04: GBX 110.00 per share

- 2022-05: GBX 116.80 per share

- 2022-06: GBX 99.60 per share

- 2022-07: GBX 113.40 per share

- 2022-08: GBX 96.00 per share

- 2022-09: GBX 79.00 per share

- 2022-10: GBX 92.70 per share

- 2022-11: GBX 95.00 per share

- 2022-12: GBX 96.90 per share

- 2023-01: GBX 112.60 per share

- 2023-02: GBX 111.40 per share

- 2023-03: GBX 122.40 per share

- 2023-04: GBX 121.60 per share

- 2023-05: GBX 108.20 per share

- 2023-06: GBX 103.20 per share

- 2023-07: GBX 112.40 per share

- 2023-08: GBX 118.80 per share

- 2023-09: GBX 135.00 per share

- 2023-10: GBX 127.80 per share

- 2023-11: GBX 131.60 per share

- 2023-12: GBX 141.60 per share

- 2024-01: GBX 146.20 per share

- 2024-02: GBX 142.80 per share

- 2024-03: GBX 131.40 per share

- 2024-04: GBX 129.60 per share

- 2024-05: GBX 167.40 per share

- 2024-06: GBX 157.80 per share

- 2024-07: GBX 162.80 per share

- 2024-08: GBX 160.00 per share

- 2024-09: GBX 155.80 per share

- 2024-10: GBX 149.40 per share

- 2024-11: GBX 144.00 per share

- 2024-12: GBX 135.60 per share

- 2025-01: GBX 136.00 per share

- 2025-02: GBX 131.00 per share

- 2025-03: GBX 133.20 per share

- 2025-04: GBX 140.00 per share

- 2025-05: GBX 148.60 per share

- 2025-06: GBX 152.00 per share

- 2025-07: GBX 141.20 per share

- 2025-08: GBX 139.00 per share

- 2025-09: GBX 150.00 per share

- 2025-10: GBX 135.60 per share

- 2025-11: GBX 141.40 per share

- 2025-12: GBX 135.00 per share

- 2026-01: GBX 140.60 per share

- 2026-02: GBX 146.20 per share

- 2026-03: GBX 127.60 per share

- 2026-04: GBX 128.95 per share

- 2026-05: GBX 152.90 per share

- 2026-06: GBX 164.80 per share

- 2026-07: GBX 150.40 per share

- 2026-08: GBX 148.30 per share

- 2026-09: GBX 137.80 per share

- 2026-10: GBX 140.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 61.63 per share, central GBX 70.13 per share, high GBX 81.44 per share

- FY2017: low GBX 76.04 per share, central GBX 86.53 per share, high GBX 100.48 per share

- FY2018: low GBX 150.57 per share, central GBX 171.28 per share, high GBX 198.85 per share

- FY2019: low GBX 85.97 per share, central GBX 97.78 per share, high GBX 113.50 per share

- FY2020: low GBX 47.92 per share, central GBX 54.42 per share, high GBX 63.09 per share

- FY2021: low GBX 55.61 per share, central GBX 63.27 per share, high GBX 73.48 per share

- FY2022: low GBX 79.18 per share, central GBX 90.10 per share, high GBX 104.63 per share

- FY2023: low GBX 48.09 per share, central GBX 54.71 per share, high GBX 63.52 per share

- FY2024: low GBX 54.11 per share, central GBX 61.53 per share, high GBX 71.41 per share

- FY2025: low GBX 76.42 per share, central GBX 86.94 per share, high GBX 100.96 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138004WZUPWV53KWV11/2025-12-31/ESEF/GB/0/2138004WZUPWV53KWV11-2025-12-31/reports/2138004WZUPWV53KWV11-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-03-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.