JOHNSON SERVICE GROUP (+) : What can JSG do to create value?

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JOHNSON SERVICE GROUP (+) : What can JSG do to create value?

EQUITIES

BUSINESS SERVICES

OUTPERFORM TARGET PRICE EPS 26e EPS 27eJOHNSON SERVICE GROUP PRICE* GBP1.37  TARGET PRICE GBP1.90 (UPSIDE 38%)  6%  3%  6%

What can JSG do to create value?

With valuation at decade lows, despite solid operational and strategic execution, a solid balance26 MAY 2026

Securities Research Report sheet and strong cash flow, investors are asking us if JSG could be a takeover target. The 1Q26

Production time: 05:36* (London time)

update was largely as expected and provided some reassurance on energy costs. We update our

Research Analysts & Publishing Entities

forecasts to reflect the new £55m share buyback, a welcome near-term support, which lifts our 2026e

Daniel Cowan and 2027e EPS by 3% and 6% respectively. We raise TP to 190p from 180p, reiterate Outperform.BNP Paribas London Branch

(+44) 7584 606 158

daniel.cowan@uk.bnpparibas.com Strategic options: what more can management do to create value?

JSG’s operational execution has generally been excellent against challenging market conditions over

Matthew Lloyd

the last six years. There has also been strategic progress with the building of leading positions in theBNP Paribas London Branch

(+44) 7584 606 239 Irish hospitality and healthcare markets as well as the luxury hotel segment in England through four

matthew.lloyd@uk.bnpparibas.com acquisitions since 2021. The new Crawley site for the independent hotel and restaurant segment

represents a significant capital project servicing London and SE England. The longer-term question

remains whether JSG looks abroad or to a third domestic segment (e.g. healthcare).

Could the consolidator become the consolidated?

JSG has long been a consolidator in the UK textile rental sector.