Johnson Service Group (LSE:JSG) tumbled 15.5% to 140.4p after reporting first-half revenue broadly flat at £258m for the six months to 30 June.
Group sales for the six months to 30 June are pencilled in at £258 million, marginally above £257.5 million a year earlier, but organic revenue slipped 0.7% as weakness in its hospitality linen division offset gains in workwear.
The firm's two divisions pulled in opposite directions: Workwear revenue is expected at £74.0 million, up from £72.1 million, with organic growth of 2.6% driven by price increases; HORECA, which supplies linen to hotels, restaurants and catering customers, is expected at £184.0 million, down from £185.4 million, with organic revenue declining approximately 2.0% against what the company described as ongoing challenges in the UK and Republic of Ireland hospitality sector.
Net debt including IFRS 16 liabilities rose to approximately £190.0 million at end-June from £159.2 million at end-December 2025, reflecting dividend payments, a share buyback programme, working capital movements and capital expenditure, with leverage described as towards the lower end of its 1.0 to 1.5 times net debt to adjusted EBITDA target range.
"We remain on track towards delivering our targeted adjusted operating margin of at least 14.0% in 2026," chief executive Peter Egan said, citing proactive management of labour and energy costs.
Full-year leverage is expected to remain similar to the June level, with the board anticipating stronger cash generation in the second half.
Half-year results are scheduled for 8 September.
