Johnson Service Group
Website:
Johnson Service Group
Index:
FTSE 250
EPIC: JSG
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£489.36M
Payout Frequency: Semi-Annual
Johnson Service Group Dividend Analysis and Summary
Declared Dividend and Key Dates
- Final dividend: 3.2p per share (FY25)
- Total FY25 dividend: 4.8p per share (up 20% year-on-year; FY24: 4.0p)
- Interim dividend: 1.6p (already declared/paid during FY25)
- Ex-dividend date: 16/04/2026
- Record date: 17/04/2026
- Payment date: 15/05/2026
- Dividend cover: 2.5x on adjusted EPS (adjusted diluted EPS 12.1p); payout c.40%
- Expected cash cost of final dividend: ~£12.1m; total dividends paid in 2025: £17.4m
- Share count context: 378.3m shares at year-end after buybacks; £54.7m buybacks in 2025 (9.2% of pre-programme shares), total buybacks since 2022: £90.3m
Sustainability and Growth Outlook
- Earnings support: Adjusted operating profit +16.4% to £72.5m; margin up 140bp to 13.5%; adjusted diluted EPS +19.8% to 12.1p. Board targets =14.0% adjusted operating margin in 2026—supportive for continued DPS growth.
- Cash generation: Free cash flow £69.1m comfortably covers the FY25 cash dividend (£17.4m). Leverage 0.95x (net debt £159.2m) and strong covenant headroom underpin capacity to sustain the payout.
- Capital allocation: The Group reiterates a progressive dividend policy alongside ongoing capex and selective M&A. With a target leverage range of 1.0–1.5x, the current 2.5x cover and cash profile point to sustainable dividends, provided trading conditions remain resilient.
Structural/Policy Items Relevant to Future Dividends
- Main Market admission (1 Aug 2025): Enhances market profile; no immediate change to dividend policy but potentially broadens investor base.
- Share buybacks: £90.3m since 2022; Board will “actively review” further buybacks through 2026. Lower share count supports per-share dividend growth, but incremental buybacks compete for cash with dividends.
- Financing: £135m RCF maturing Aug 2027; refinancing discussions underway. Target leverage maintained at 1.0–1.5x; substantial headroom currently, but larger M&A or stepped-up buybacks could influence payout decisions.
- Operational changes: Lancaster Workwear site closure (one-off exceptional), continued estate investment and efficiency programmes should support margins and cash flow over time.
Risks and Flags to Dividend Stability
- End-market exposure: HORECA customers face elevated labour/premises costs; regional/sector volume variability could pressure pricing and volumes.
- Cost inflation: Labour still elevated; energy costs hedged but above historical norms—requires ongoing price discipline and efficiency gains to protect margins.
- Balance sheet trajectory: Net debt rose due to capex and buybacks; while leverage is low now (0.95x), additional buybacks or acquisitions could lift leverage towards the top of the 1.0–1.5x range and temper dividend growth flexibility.
- Refinancing/interest rate risk: Facility renewal outcomes and rate environment could modestly raise financing costs, though covenant headroom is currently strong.
- One-off events: Site fire and reorganisation costs were manageable; residual execution/operational risks persist but appear well controlled.
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Johnson Service Group Annual Dividend Yield - 3.33%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/04/2025 |
09/05/2025 |
Final |
2.70p |
GBX |
| 02/10/2025 |
04/11/2025 |
Interim |
1.60p |
GBX |
Total (Annual Dividends Per Share):
4.30p
Dividend Yield =
Annual Dividends Per Share (4.30p)
÷ Share Price (129p)
= 3.33%
Johnson Service Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 16/04/2026 |
15/05/2026 |
Final |
3.2000p |
GBX |
| 02/10/2025 |
04/11/2025 |
Interim |
1.60p |
GBX |
| 10/04/2025 |
09/05/2025 |
Final |
2.70p |
GBX |
| 03/10/2024 |
01/11/2024 |
Interim |
1.30p |
GBX |
| 11/04/2024 |
10/05/2024 |
Final |
1.90p |
GBX |
| 05/10/2023 |
03/11/2023 |
Interim |
0.90p |
GBX |
| 13/04/2023 |
12/05/2023 |
Final |
1.60p |
GBX |
| 06/10/2022 |
04/11/2022 |
Interim |
0.80p |
GBX |
| 09/04/2020 |
07/05/2020 |
Final |
2.35p |
GBX |
| 03/10/2019 |
01/11/2019 |
Interim |
1.15p |
GBX |
| 11/04/2019 |
10/05/2019 |
Final |
2.10p |
GBX |
| 04/10/2018 |
02/11/2018 |
Interim |
1.00p |
GBX |
| 12/04/2018 |
11/05/2018 |
Final |
1.90p |
GBX |
| 05/10/2017 |
03/11/2017 |
Interim |
0.90p |
GBX |
| 13/04/2017 |
12/05/2017 |
Final |
1.70p |
GBX |
| 06/10/2016 |
04/11/2016 |
Interim |
0.80p |
GBX |
| 14/04/2016 |
13/05/2016 |
Final |
1.45p |
GBX |
| 08/10/2015 |
06/11/2015 |
Interim |
0.65p |
GBX |
| 16/04/2015 |
15/05/2015 |
Final |
1.20p |
GBX |
| 09/10/2014 |
07/11/2014 |
Interim |
0.50p |
GBX |
| 16/04/2014 |
16/05/2014 |
Final |
0.81p |
GBX |
| 09/10/2013 |
08/11/2013 |
Interim |
0.40p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
1.300 |
1.900 |
GBX |
3.200 |
28.000 |
| 2023 |
0.900 |
1.600 |
GBX |
2.500 |
212.500 |
| 2022 |
0.800 |
|
GBX |
0.800 |
-65.950 |
| 2020 |
|
2.350 |
GBX |
2.350 |
-27.690 |
| 2019 |
1.150 |
2.100 |
GBX |
3.250 |
12.060 |
| 2018 |
1.000 |
1.900 |
GBX |
2.900 |
11.530 |
| 2017 |
0.900 |
1.700 |
GBX |
2.600 |
15.550 |
| 2016 |
0.800 |
1.450 |
GBX |
2.250 |
21.620 |
| 2015 |
0.650 |
1.200 |
GBX |
1.850 |
41.220 |
| 2014 |
0.500 |
0.810 |
GBX |
1.310 |
227.500 |
| 2013 |
0.400 |
|
GBX |
0.400 |
|
Johnson Service Group Dividend Calculator
Johnson Service Group Dividend Growth
| Dividend Growth (1Y) |
20%
|
| Dividend CAGR (5Y) |
43.1%
|
| Years of Growth |
3
|
| Payout Ratio |
46.9%
|
| Buyback Yield |
3.5%
|
| Shareholder Yield |
7.17%
|
| P/E Ratio (TTM) | 13.99 |
|---|
| Forward P/E | 9.1 |
|---|
| P/FCF | 12.75 |
|---|
| Earnings Yield | 7.6% |
|---|
| FCF Yield | 7.84% |
|---|
| ROE | 12.71% |
|---|
| ROCE | 13.9% |
|---|
| Profit Margin | 6.93% |
|---|
| Operating Margin | 12.14% |
|---|
| Gross Margin | 100% |
|---|