Interim report
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8 September 2026TIDM: JSG Johnson Service Group PLC(‘JSG’ or ‘the Group’)Interim Results for the Six Months ended 30 June 20262026 full year adjusted operating margin of at least 14% remains on track,despite challenging market conditions FINANCIAL OVERVIEW H1 2026H1 2025IncreaseFY 2025 Adjusted results Revenue £258.0m£257.5m+0.2%£535.4m Adjusted operating profit1 £29.8m£28.7m+3.8%£72.5m Adjusted operating profitmargin1 11.6% 11.1% +50bps13.5% Adjusted EBITDA margin1 30.2% 29.3%+90bps31.2% Adjusted profit beforetaxation2 £25.3m£24.9m+1.6%£64.5m Adjusted diluted earnings pershare3 5.0p 4.6p +8.7% 12.1p Statutory results Operating profit £25.3m£23.7m+6.8%£58.8m Profit before taxation£20.8m£19.9m+4.5%£50.8m Diluted earnings per share3.9p 3.6p +8.3% 9.2p Dividend 1.8p 1.6p +12.5% 4.8p Group revenue in line with prior year; organic revenue softened slightly to (0.7%) (Workwear: 2.6%;HORECA: (2.0%)).Group adjusted operating profit margin progression (+50 bps) reflects our continuing strong focuson operational efficiencies and disciplined cost management.Revenue for Workwear increased by 2.6% to £74.0 million (June 2025: £72.1 million) and adjustedoperating profit increased by 5.8% to £11.0 million (June 2025: £10.4 million), resulting in animproved margin of 14.9% (June 2025: 14.4%).HORECA revenue decreased by (0.8%) to £184.0 million (June 2025: £185.4 million), whilstadjusted operating profit increased by 4.0% to £23.4 million (June 2025: £22.5 million), reflecting animproved margin of 12.7% (June 2025: 12.1%).£55.0 million share buyback programme, launched in May 2026, is progressing well, with £28.2million, representing approximately 51% of the programme, completed as at 31 August 2026.Net debt (excluding IFRS 16 liabilities) at 30 June 2026 was £135.9 million (December 2025:£112.4 million) and net debt was £188.6 million (December 2025: £159.2 million).Leverage of 1.11x (December 2025: 0.95x) was towards the lower end of the Group’s target rangeof 1.0x – 1.5x.
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OPERATIONAL OVERVIEWMacroeconomic headwinds continue to influence competitive dynamics across the Group’s endmarket.Workwear volumes were broadly stable, with customer retention levels maintained at 94%.HORECA experienced a slower start to the year against a difficult market backdrop; price increasesand contract renewals remain challenging and we continue to see some market churn.Our focus remains on operational efficiency, dynamic pricing and disciplined cost management.Labour costs continue to be proactively managed across the Group through disciplined resourcemanagement and targeted capital investment.Energy costs, as a percentage of revenue, reduced to 7.0% (June 2025: 7.8%), with the majority ofthe Group’s anticipated electricity, gas and diesel requirements for the remainder of 2026 fixed orhedged. The Group has also fixed approximately 60% of its anticipated electricity usage and 70%of its anticipated gas usage for 2027. OUTLOOKOur strong financial position and cash generative operating model support a disciplined approachto capital allocation, enabling us to pursue further earnings enhancing opportunities as they arise.Workwear is expected to continue to benefit from stable volumes and the implementation ofcustomer price increases.The seasonal uplift in HORECA over the summer months was more modest than originallyanticipated and we expect that softer trading will persist throughout the remainder of the year.However, productivity improvements and our strong focus on operational cost managementcontinue to help mitigate the impact of lower volumes in HORECA.The Board will continue to actively review its options on capital allocation, evaluating the balancebetween organic growth ambitions, investing in our acquisition strategy and returns toShareholders.Notwithstanding the ongoing market challenges, the Board continues to expect to deliver anotheryear of progress and to achieve its targeted adjusted operating margin of at least 14.0% in 2026. Peter Egan, Chief Executive Officer of Johnson Service Group PLC, commented:“Against a challenging market backdrop, the Group delivered a resilient first-half performance, withadjusted operating profit increasing by 3.8% and the adjusted operating margin improving by 50 basispoints. Workwear continued to make progress, while disciplined cost management, lower energy costsand the benefits of our continuing investment programme helped to mitigate softer volumes withinHORECA. Although the seasonal uplift in HORECA was more modest than originally anticipated, we expect todeliver another year of progress and remain on track to achieve our targeted adjusted operating marginof at least 14.0% for the full year. I would like to thank all our employees for their continued dedication and significant contribution duringthe period.” SELL-SIDE ANALYSTS’ MEETINGA presentation for sell-side analysts will be held today at 09:30, at Investec Bank plc, 30 GreshamStreet, London EC2V 7QP, details of which will be distributed by Camarco. A copy of the presentationand audio recording of the meeting will be available on the Group’s website (www.jsg.com) followingthe meeting. ENQUIRIES Johnson Service Group PLC Peter Egan, CEO Ryan Govender, CFO Tel: 020 3757 4992/4981 (on the day) Tel: 01928 704 600 (thereafter) Investec Bank plc Camarco (Financial PR)David Flin Ginny PulbrookVirginia Bull Letaba RimellTom Brookhouse Tel: 020 7597 5970 Tel: 020 3757 4992/4981
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Financial and Operational Review BASIS OF PREPARATIONThroughout this statement, and consistent with prior years, a number of alternative performancemeasures (‘APMs’) are used to describe the Group's performance. APMs are not recognised underUK-adopted international accounting standards. Whilst the Board uses APMs to manage and assessthe performance of the Group, and believes they are representative of ongoing trading, facilitatemeaningful year-on-year comparisons and hence provide useful information to stakeholders, it iscognisant that they do have limitations and should not be regarded as a complete picture of the Group’sfinancial performance. APMs, which include adjusted operating profit, adjusted profit before taxation,adjusted EBITDA, adjusted EPS and net debt excluding IFRS 16 lease liabilities, are defined withinnote 1 (Basis of Preparation) and are reconciled to statutory reporting measures in notes 2, 5, 8 and 18. FINANCIAL REVIEW Financial ResultsRevenue in the period increased by 0.2% to £258.0 million (June 2025: £257.5 million). AdjustedEBITDA was £77.9 million (June 2025: £75.4 million) giving an improved margin of 30.2% (June 2025:29.3%). Adjusted operating profit increased by 3.8% to £29.8 million (June 2025: £28.7 million), whilstthe adjusted operating profit margin increased by 50 basis points to 11.6% (June 2025: 11.1%). Segmental revenue, adjusted operating profit and adjusted operating profit margin are as follows: June 2026 June 2025 Revenue AdjustedOperatingProfit Margin Revenue AdjustedOperatingProfit Margin £m £m % £m £m %Workwear 74.0 11.0 14.9 72.1 10.4 14.4HORECA 184.0 23.4 12.7 185.4 22.5 12.1Central Costs- (4.6) - - (4.2) - Group 258.0 29.8 11.6 257.5 28.7 11.1 Operating profit, after amortisation of intangible assets (excluding software amortisation) of £3.9 million(June 2025: £4.0 million) and an exceptional charge of £0.6 million (June 2025: £1.0 million), was £25.3million (June 2025: £23.7 million). Total finance costs were £4.5 million (June 2025: £3.8 million) reflecting higher borrowings over theperiod, most notably as a result of the £54.7 million cash outflow in 2025 and a further £12.7 millioncash outflow in the first half of 2026 in relation to share buyback activity. Adjusted profit before taxation was £25.3 million (June 2025: £24.9 million) whilst statutory profit beforetaxation was £20.8 million (June 2025: £19.9 million). The tax rate on the adjusted profit before taxation was 24.5% (June 2025: 24.1%). The rate is belowthe headline UK corporation tax rate for the full year of 25.0% due to the effect of expenses notdeductible for taxation being offset by short-term timing differences and the impact of the lower rate of12.5% applied to profits generated in the Republic of Ireland. Adjusted diluted earnings per share increased by 8.7% to 5.0 pence (June 2025: 4.6 pence). DividendAn increased interim dividend of 1.8 pence per share (June 2025: 1.6 pence per share) will be paid on6 November 2026 to those Shareholders on the register of members on 9 October 2026. The ex-dividend date is 8 October 2026. The increased dividend maintains our full year dividend cover of 2.5times and is in line with our stated capital allocation policy. Defined Benefit Pension Scheme (‘the Scheme’)The recorded surplus for the Scheme, calculated in accordance with IAS 19, was £7.6 million at June2026, compared to a surplus of £4.9 million at December 2025. The improvement in the position ismainly driven by an increase in the discount rate assumption (due to increases in corporate bondyields), which has been slightly offset by a rise in the assumption of future inflation. The Scheme continues to have a significant portion of assets invested so as to hedge the impact of anymovements in bond yields, thereby reducing overall volatility. The hedge target in place throughout themajority of the period was 85%, increasing to 95% in June 2026 and then to 100% in September 2026. Cash Flow and Net DebtFree cash flow (calculated as net cash generated from operating activities, less net spend on textilerental items, less the capital element of leases) in the first half of the year was £21.2 million, comparedto £25.0 million in the first half of 2025. The reduction reflects, in the main, an increased workingcapital outflow and higher interest payments. Net debt (excluding IFRS 16 liabilities) at 30 June 2026 was £135.9 million (December 2025: £112.4million), reflective of the timing of dividend payments, the ongoing share buyback programme, workingcapital movements and capital expenditure. Including IFRS 16 lease liabilities, net debt at 30 June
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2026 was £188.6 million (December 2025: £159.2 million). Leverage at 1.11x (December 2025: 0.95x)was towards the lower end of our target range of 1.0x – 1.5x. FinancingIn April 2026, we completed the refinance of our committed revolving credit facility, which increasedfrom £135.0 million to £175.0 million with a further £50.0 million accordion option, subject to lenderconsent. The new facility matures in April 2030, with an option to extend for a further year with lenderconsent, and provides sufficient liquidity for current commitments and plans. Bank covenants remain unchanged, comprising leverage (net debt to adjusted EBITDA) of less thanthree times and interest cover (adjusted operating profit to net interest payable) of at least fourtimes. The margin on the refinanced facility remains linked to our leverage covenant, which iscalculated quarterly, and has reduced to a range of 1.30% to 2.30% (previously 1.45% to 2.45%) overthe relevant SONIA or EURIBOR rate, as applicable. Return on Capital Employed (‘ROCE’) ROCE, calculated as rolling 12-month adjusted operating profit divided by the average of opening andclosing Shareholders’ equity, net debt and post-employment benefit obligations for the same 12-monthperiod, was 16.7% (June 2025: 15.8%). Capital Structure and Share BuybackThe Group’s objective is to employ a disciplined approach to investment, returns and capital efficiencyto deliver sustainable, compounding earnings growth whilst also maintaining a strong balancesheet. Accordingly, our capital allocation policy remains unchanged and takes into account:maintaining a strong balance sheet;investing in our estate to increase efficiency;appropriate accretive acquisitions;upholding a progressive dividend policy; andto the extent that there remains surplus cash, returning it to Shareholders. The Group’s medium to long-term intention is to maintain a capital structure such that we targetleverage of 1.0x - 1.5x, other than for short-term specific exceptions. Under this framework, the Board announced a £55.0 million share buyback programme (the “BuybackProgramme”) in May 2026 which, as at 31 August 2026, will have returned £28.2 million toShareholders. This brings the total amount returned to Shareholders through share buybacks since2022 to £118.5 million. During that period, some 88.2 million ordinary shares have been repurchasedfor cancellation at an average price of 134.35 pence per share, representing 19.8% of the share capitalin issue immediately prior to the commencement of the 2022 share buyback programme. The Board will continue to actively review its options on capital allocation, evaluating the balancebetween organic growth ambitions, investing in our acquisition strategy and returns to Shareholders. OPERATIONAL REVIEWOur BusinessesThe Group provides textile rental and related services throughout the UK and Republic of Ireland. Our Workwear division comprises solely of ‘Johnsons Workwear’, which predominantly providesworkwear rental, protective wear and laundry services to UK corporates across all industrysectors. Within our Hotel, Restaurant and Catering (‘HORECA’) division, ‘Johnsons Hotel Linen’, ourhigh-volume linen business, primarily serves group and independent large hotel customers, ‘JohnsonsHotel, Restaurant and Catering Linen’ provides premium linen services to restaurant, hospitality andcorporate event customers whilst ‘Johnsons Luxury Linen’ provides bespoke linen predominantly to fourand five-star luxury hotels. Also, within HORECA, ‘Johnsons Ireland’ serves both hospitality andhealthcare customers. Labour Cost ManagementLabour costs continue to be proactively managed across the Group through disciplined resourcemanagement, to maximise productivity, and targeted capital investment aimed at delivering operationalefficiencies. In the six months to 30 June 2026, labour costs, as a percentage of revenue, increased to 47.2% (June2025: 46.4%). The increase reflects a 4.8% uplift in January 2026 to the National Minimum Wage inthe Republic of Ireland and a 4.1% uplift in April 2026 to the National Living Wage in the UK. Whilstlabour costs for the full year, as a percentage of revenue, are expected to trend towards that for 2025,the significant wage increases remain difficult to fully pass through in a competitive environment. Energy Cost ManagementEnergy costs (comprising gas, electricity and fuel) still remain at higher levels than historically, in partdue to the ongoing conflict within the Middle East. Accordingly, the Group’s policy on energy remains toforward fix pricing on a rolling basis, building a position such that our near-term requirements arelargely fixed, thereby providing us with a high degree of visibility over 2026 and 2027 energy costs. Costs for the first half of 2026 represented 7.0% of revenue and, encouragingly, were lower than theequivalent period in 2025 (June 2025: 7.8%). We anticipate a further modest reduction in thispercentage in the second half.
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The Group has fixed pricing for the second half of 2026 over approximately 80% of its anticipatedelectricity usage and 90% of its anticipated gas usage and has also hedged approximately 70% of itsanticipated diesel requirement. For 2027, the Group has fixed pricing for approximately 60% and 70%of its anticipated electricity and gas usage, respectively, and has also hedged approximately 20% of itsanticipated diesel requirement. A prolonged conflict in the Middle East may exert upward pressure onunfixed and unhedged energy costs into 2027. Looking further ahead, we have already entered into a number of fixed pricing arrangements in respectof our 2028 and 2029 electricity and gas requirements and we will continue to lock-in further prices on arolling basis, in line with our established policy. Workwear Division Revenue for the Workwear division was £74.0 million (June 2025: £72.1 million), an increase of2.6%. The increase was entirely organic, reflecting stable volumes and customer priceincreases. Adjusted EBITDA increased to £26.5 million (June 2025: £25.9 million), with the resultantmargin of 35.8% being broadly in line with the prior year (June 2025: 35.9%). Adjusted operating profitwas £11.0 million (June 2025: £10.4 million), an increase of 5.8%, resulting in an improved margin of14.9% (June 2025: 14.4%), reflecting the benefit of operational efficiencies to offset cost inflation. The division made a steady start to the year, with new business providing a platform for growth whilst,at the same time, we maintain a clear focus on retaining and developing existing customerrelationships. Sales activity maintained momentum, particularly within the industrial market, reflectingour continued focus on service quality, operational capability and delivering value forcustomers. Similarly, and despite the competitive market landscape, our service team secured anumber of contract renewals with multiple customers. Customer retention was maintained at 94%,validating the strength of our customer relationships, the consistent quality of our service delivery andthe diversity of our customer base. Following the fire at our small industrial workwear processing unit in Bristol in June 2025, allremediation works have been successfully completed and processing operations have now beenreinstated. Whilst the unit was inoperable, work was processed at our sites in Exeter and Treforest withlittle, or no, disruption to customer service, demonstrating the resilience of the wider business. Weexpect that the related insurance claim will be finalised before the end of the current financial year. HORECA DivisionAgainst a difficult market backdrop, HORECA experienced a slower start to the year. Total revenuewas £184.0 million (June 2025: £185.4 million), a reduction of 0.8%, whilst organic revenueperformance was (2.0%). Adjusted EBITDA increased to £55.9 million (June 2025: £53.7 million) givingan improved margin of 30.4% (June 2025: 29.0%). Adjusted operating profit was £23.4 million (June2025: £22.5 million), an increase of 4.0%, with an improved margin of 12.7% (2025: 12.1%) reflecting,in part, the benefits of lower energy and operational efficiencies as a result of recent capital investment. Macroeconomic headwinds continue to influence competitive dynamics and impact customer behaviouracross the Group’s end markets. The hospitality sector within the UK and Republic of Ireland continuesto face challenging trading conditions, including elevated labour, energy, business rates and otheroperating costs placing pressure on many hotel and restaurant operators. These pressures havecontributed to more cautious customer decision-making, resulting in suppressed volumes, morechallenging price increases and contract renewals, and, in some areas, higher levels of customer churnas some customers seek to manage their own cost base. In response to the current market backdrop, we remain focused on a combination of dynamic pricing,service-led differentiation and operational efficiency. We continue to work closely with customers todemonstrate the value, reliability and operational criticality of our service. At the same time, targetedinvestment in labour productivity, workflow optimisation, energy efficiency and water reduction ishelping to offset cost pressures and strengthen margins. The cost increases being experienced across UK businesses continue to lead some of our smaller,independent competitors to reassess their business strategy, with certain operators choosing to exit themarket. As a result, we added contracts with annualised revenue of over £5.0 million to the divisionduring the first half of 2026 and anticipate that further opportunities will continue to arise. Johnsons Hotel LinenOur key objectives of being ‘easy to do business with’, providing customers with an excellentprofessional service, delivering on time and in full and building long-term partnerships with customersand suppliers remain at the forefront of the business. Our field-based service teams and drivers, inparticular, continue to receive excellent feedback from customers for their collaborative serviceapproach. The successful delivery of our service has enabled us to re-sign and extend a number of key customercontracts in the period, with one of our largest customers committing to a further five-year term togetherwith an increase in the number of hotels serviced by us. Reflecting the difficult market backdrop, thissuccess has not been universal, with customer churn and suppressed volumes leading to an overallslight reduction in trading year-on-year. Johnsons Hotel, Restaurant & CateringSales activity has remained broadly stable, and we have been able to secure, or retain, a number ofcustomer contracts during the period, reflecting the strength and reliability of our service proposition
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and national operating platform. Trading in the central London restaurant market also remainedresilient. However, the effect of significantly increased business costs has particularly impacted on some of theindependent hotel and restaurant customers that we typically serve. As a consequence, this hasresulted in price increase and renewal negotiations having become more challenging, resulting inweaker demand and increased market churn. Johnsons Luxury LinenThe Luxury Linen business delivered a satisfactory operational performance in the first half of the year,despite lower demand in London luxury hotels influenced by the prolonged Middle Eastconflict. Trading was supported by strong customer retention and a continued focus on operationalexcellence in order to deliver the very best level of service to its discerning customers. The salespipeline remains encouraging and supports our growth ambition to expand our reach across four andfive-star luxury hotels. Those customers obtained from an independent operator earlier in the year continue to be onboardedin a controlled and systematic manner. During the period, we successfully launched our offering inCornwall, leveraging existing Group infrastructure, representing the first extension of our luxuryoperating model beyond the existing core network. Johnsons IrelandJohnsons Ireland services customers across the entire island of Ireland from its three processingfacilities in Wexford, Naas and Belfast. Whilst the competitive landscape within Ireland remainschallenging, particularly within hospitality, the business has continued to focus on delivering a reliableand quality service to its customer base. Similar to the UK, ongoing inflationary cost headwinds,particularly in relation to labour, continue to impact not only ourselves but also our customers. Within healthcare, volumes remained broadly stable although we are experiencing some challengeswith customer pricing. Positively, we have recently commenced servicing a large public acute hospitalwith over 600 beds and the pipeline for further opportunities remains encouraging. In hospitality, overallvolumes also remained broadly stable although there were regional variances across theisland. Customer churn, which is predominantly price-driven, has been largely offset with gains, albeitoften at lower pricing. Capital InvestmentCapital expenditure in the first half of the year was £17.4 million (June 2025: £23.8 million), withtargeted capital investment continuing to focus on delivering improved operational efficiencies acrossthe estate, reducing our carbon footprint and water usage and supporting the long-term resilience of thebusiness. Within Workwear, investment included the installation of new washer extractors at Uttoxeter, theimplementation of heat recovery technology at Perth and new tunnel finishers at Gateshead andBirmingham to drive efficiencies. In HORECA, capital projects during the period included the installation of new dryers at Pwllheli andCardiff and a new boiler at our Bourne site, all of which help drive further improvements in our gasefficiency. In Tottenham, high-speed ironing lines were installed and the migration of its legacy ITinfrastructure to that utilised across the wider group enhances the site’s disaster recoverycapabilities. We have commenced a two-year roof replacement project at Wexford and therefurbishment of our Naas site. Across the division, we have also continued to invest in process andworkflow optimisation to further enhance service levels and improve productivity. SustainabilitySustainability remains closely linked to operational performance and long-term value creation and,recognising our duty to stakeholders to operate the business in an ethical and responsible manner, wecontinue to make steady progress with embedding our sustainability programme across the Group andsupporting the integration of sustainability into our strategy, operations and decision‐making. We are continuing to work with both our customers and suppliers as we make progress in meeting ourgoals and, in June 2026, we published our fifth Sustainability Report, which sets out our sustainabilitystrategy, governance, performance and progress in 2025. The report can be found on our websiteat www.jsg.com. During the first half of 2026, we made further progress against our Vision 2030 targets. Throughoperational improvements, plant and machinery upgrades, increased waste diversion from landfill andreduced reliance on single-use plastics, we continued to reduce the impact of our operations. Wehave also retained our silver medal award from EcoVadis, placing us in the top 10% of companiesassessed by EcoVadis globally and in the top 6% within our industry category. Reflecting the outcomes of our Double Materiality Assessment, which was undertaken in 2025, ourpriorities for the rest of 2026 will focus on those areas where we have the greatest impacts, risks andopportunities across our operations and value chain. EmployeesOur employees are key to the continuing success of the Group and, in particular, in our ability to delivercustomer service levels which exceed our customers’ expectations. The Board would like to thank
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them for their support, hard work and significant contribution to the progress of the business over thelast six months. Ensuring employees achieve their full potential remains a key focus of the Group. Providing a range oftraining, education, apprenticeship and development programmes for employees allows them to takeadvantage of career progression opportunities within the Group and helps to build a workforce for thefuture. In addition to the significant volume of operational, compliance and role-specific trainingdelivered internally, a number of key externally accredited training and development programmes werealso successfully completed. Employee engagement activity remains ongoing, supporting our people and providing clean, safe andenjoyable environments to work in. BOARD CHANGESAs previously announced, Lysanne Gray joined the Board as an Independent Non-Executive Directoron 1 June 2026 and, with effect from today, will succeed Chris Girling as Audit Committee Chair. Inaddition, Nicola Keach, who has served as an Independent Non-Executive Director of the Companysince June 2022, succeeded Chris Girling as Senior Independent Director with effect from 1 June 2026.Chris will continue to serve as an Independent Non-Executive Director until he steps down and retiresfrom the Board on 31 December 2026. OUTLOOK Whilst macroeconomic headwinds continue to influence competitive dynamics across our end markets,the Group continues to demonstrate resilience through its strong customer relationships, disciplinedcost management and ongoing investment in operational efficiencies and has delivered furtherprogress in the first half of the year. Workwear is expected to continue to benefit from stable volumes and the implementation of customerprice increases. The seasonal uplift in HORECA over the summer months was more modest thanoriginally anticipated and we expect that this softer trading will persist throughout the remainder of theyear. However, productivity improvements and our strong focus on operational cost managementcontinue to help mitigate the impact of lower volumes in HORECA. The Group’s strong financial position and cash generative operating model support a disciplinedapproach to capital allocation, enabling us to pursue further earnings enhancing opportunities as theyarise. The £55.0 million share buyback programme announced in May 2026 is progressing well andbrings, as at 31 August 2026, the total amount returned to Shareholders through share buybacks since2022 to £118.5 million. The Board will continue to actively review its options on capital allocation,evaluating the balance between organic growth ambitions, investing in our acquisition strategy andreturns to Shareholders. Notwithstanding the ongoing market challenges, the Board continues to expect to deliver another yearof progress and to achieve its targeted adjusted operating margin of at least 14.0% in 2026. RESPONSIBILITY STATEMENTThe condensed consolidated interim financial statements comply with the Disclosure Guidance andTransparency Rules (‘DTR’) of the United Kingdom’s Financial Conduct Authority in respect of therequirement to produce a half-yearly financial report. The condensed consolidated interim financialstatements are the responsibility of, and have been approved by, the Directors. The Directors confirm that to the best of their knowledge:the condensed consolidated interim financial statements have been prepared in accordance withIAS 34, ‘Interim Financial Reporting’ as adopted by the United Kingdom;this interim management report includes a fair review of the information required by DTR 4.2.7R(indication of important events during the first six months of the financial year and a description ofthe principal risks and uncertainties for the remaining six months of the year); andthis interim management report includes a fair review of the information required by DTR 4.2.8R(disclosure of related party transactions and changes therein). The Directors of Johnson Service Group PLC are listed in the Johnson Service Group PLC 2025Annual Report and, other than for the appointment of Lysanne Gray on 1 June 2026, remainunchanged. Details of the Directors are available on the Johnson Service Group PLCwebsite: www.jsg.com. By order of the Board Peter Egan Ryan GovenderChief Executive Officer Chief Financial Officer8 September 2026 8 September 2026 Forward Looking StatementsCertain statements in these condensed consolidated interim financial statements constitute forward-looking statements. Anystatement in this document that is not a statement of historical fact including, without limitation, those regarding the Group’s futureexpectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks anduncertainties include, among other factors, changing economic, financial, business or other market conditions. These and otherfactors could adversely affect the outcome and financial effects of the plans and events described in these condensed consolidated
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ShareCapital SharePremium MergerReserve CapitalRedemptionReserve HedgeReserve TranslationReserve RetainedEarnings TotalEquity £m £m £m £m £m £m £m £m Balance at 1 January 2025 41.5 17.3 1.6 3.7 (0.2) - 243.0 306.9 Profit for the period - - - - - - 14.6 14.6 Other comprehensive (loss) / income - - - - (0.2) 0.1 2.1 2.0 Total comprehensive (loss) / incomefor the period - - - - (0.2) 0.1 16.7 16.6 Share options(value of employee services) - - - - - - 0.8 0.8 Purchase of own shares by EST - - - - - - (0.1) (0.1)Share buyback (1.2) - - 1.2 - - (19.8) (19.8)Deferred tax on share options - - - - - - 0.2 0.2 Corporation tax on share options - - - - - - (0.1) (0.1)Issue of share capital 0.2 0.2 - - - - - 0.4 Dividend paid - - - - - - (11.1) (11.1)Transactions with Shareholdersrecognised directly in Shareholders’equity (1.0) 0.2 - 1.2 - - (30.1) (29.7) Balance at 30 June 2025 40.5 17.5 1.6 4.9 (0.4) 0.1 229.6 293.8 Profit for the period - - - - - - 22.5 22.5 Other comprehensive income / (loss) - - - - 0.2 (0.1) (1.1) (1.0) Total comprehensive income / (loss)for the period - - - - 0.2 (0.1) 21.4 21.5 Consolidated Income Statement Note Half year to30 June2026£m Half year to30 June2025£m Year ended31 December 2025£m Revenue 2 258.0 257.5 535.4 Impairment loss on trade receivables (0.3) (0.5) (1.2)All other costs (232.4) (233.3) (475.4)Operating profit 2 25.3 23.7 58.8 Operating profit before amortisation of intangible assets(excluding software amortisation) and exceptional items 29.8 28.7 72.5 Amortisation of intangible assets (excluding software amortisation) (3.9) (4.0) (7.7)Exceptional items 3 (0.6) (1.0) (6.0)Operating profit 2 25.3 23.7 58.8 Net finance cost 4 (4.5) (3.8) (8.0) Profit before taxation 20.8 19.9 50.8 Taxation charge 7 (5.9) (5.3) (13.8) Profit for the period from continuing operations 14.9 14.6 37.0 Profit for the period from discontinued operations - - 0.1 Profit for the period attributable to equity holders 14.9 14.6 37.1 Earnings per share 8 Basic earnings per share 4.0p 3.6p 9.3p Diluted earnings per share 3.9p 3.6p 9.2p See note 8 for adjusted basic earnings per share and adjusted diluted earnings per share. Consolidated Statement of Comprehensive Income Half year to30 June2026 Half year to30 June2025 Year ended 31December 2025 Note £m £m £m Profit for the period 14.9 14.6 37.1 Items that will not be subsequently reclassified to profit or loss Re-measurement and experience gains on post-employment benefitobligations 14 2.6 2.8 0.9 Taxation in respect of re-measurement and experience gains (0.6) (0.7) (0.2) Items that may be subsequently reclassified to profit or loss Cash flow hedges (net of taxation) - fair value gains / (losses) 1.0 (0.4) (0.3) - transfers to administrativeexpenses (0.6) 0.2 0.3 Net gain / (loss) on hedge of a netinvestment 0.3 (0.9) (1.4) Exchange differences on translation of foreign operations (0.1) 1.0 1.7 Other comprehensive income for the period 2.6 2.0 1.0 Total comprehensive income for the period 17.5 16.6 38.1 The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements. Consolidated Statement of Changes in Shareholders’ Equity
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Share options(value of employee services) - - - - - - 1.6 1.6 Share buyback (2.6) - - 2.6 - - (34.9) (34.9)Deferred tax on share options - - - - - - (0.7) (0.7)Issue of share capital (0.1) - - - - - - (0.1)Corporation tax on share options - - - - - - 0.2 0.2 Dividend paid - - - - - - (6.3) (6.3)Transactions with Shareholdersrecognised directly in Shareholders’equity (2.7) - - 2.6 - - (40.1) (40.2) Balance at 31 December 2025 37.8 17.5 1.6 7.5 (0.2) - 210.9 275.1 Profit for the period - - - - - - 14.9 14.9 Other comprehensive income - - - - 0.4 0.2 2.0 2.6 Total comprehensive income for theperiod - - - - 0.4 0.2 16.9 17.5 Share options(value of employee services) - - - - - - 1.1 1.1 Purchase of own shares by EST - - - - - - (0.2) (0.2)Share buyback (note 15) (0.8) - - 0.8 - - (12.7) (12.7)Issue of share capital 0.2 0.5 - - - - - 0.7 Dividend paid - - - - - - (12.2) (12.2)Transactions with Shareholdersrecognised directly in Shareholders’equity (0.6) 0.5 - 0.8 - - (24.0) (23.3) Balance at 30 June 2026 37.2 18.0 1.6 8.3 0.2 0.2 203.8 269.3 The Group has an Employee Share Trust (EST) to administer share plans and to acquire shares, using funds contributed by theGroup, to meet commitments to employee share schemes. As at 30 June 2026, the EST held 9,177 shares (June 2025: 2,615shares; December 2025: 2,947 shares). Consolidated Balance Sheet As at30 June2026 As at30 June 2025 As at31 December2025 Note £m £m £m Non-current assets Goodwill 9 153.9 153.8 154.0 Intangible assets 10 25.3 28.1 24.9 Property, plant and equipment 11 175.3 172.6 168.9 Right-of-use assets 12 47.8 41.7 42.3 Textile rental items 13 75.7 73.3 80.0 Trade and other receivables 0.8 0.5 0.8 Post-employment benefit assets 14 7.6 6.7 4.9 486.4 476.7 475.8 Current assets Inventories 5.2 4.3 2.9 Trade and other receivables 97.0 91.6 87.1 Reimbursement assets 9.8 2.5 2.1 Derivative financial assets 0.3 - - Current income tax assets 0.6 0.8 0.4 Cash and cash equivalents 6.4 11.5 11.0 Assets classified as held for sale 0.2 0.2 0.2 119.5 110.9 103.7 Current liabilities Trade and other payables 89.1 100.1 93.1 Borrowings 9.2 8.8 9.0 Lease liabilities 9.3 6.8 7.4 Derivative financial liabilities - 0.3 0.3 Provisions 9.9 2.9 2.2 117.5 118.9 112.0 Non-current liabilities Post-employment benefit obligations 14 0.2 0.3 0.3 Deferred income tax liabilities 42.0 32.9 37.8 Trade and other payables 0.1 0.2 0.1 Borrowings 133.1 101.7 114.4 Lease liabilities 43.4 39.2 39.4 Derivative financial liabilities - 0.3 -Provisions 0.3 0.3 0.4 219.1 174.9 192.4 NET ASSETS 269.3 293.8 275.1 Capital and reserves attributable to the Company’s Shareholders Share capital 15 37.2 40.5 37.8 Share premium 18.0 17.5 17.5 Merger reserve 1.6 1.6 1.6 Capital redemption reserve 8.3 4.9 7.5 Hedge reserve 0.2 (0.4) (0.2) Translation reserve 0.2 0.1 - Retained earnings 203.8 229.6 210.9 Total equity 269.3 293.8 275.1 The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements. The condensedconsolidated interim financial statements on pages 14 to 34 were approved by the Board of Directors on 8 September 2026 andsigned on its behalf by: Ryan GovenderChief Financial Officer Consolidated Statement of Cash Flows
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Note Half year to30 June2026£m Half year to30 June2025£m Year ended31 December2025£m Cash flows from operating activities Profit for the period 14.9 14.6 37.1 Adjustments for: Taxation charge 7 5.9 5.3 13.8 Finance cost 4.5 3.8 8.0 Depreciation 48.1 46.4 94.0 Amortisation 3.9 4.3 8.0 Profit on disposal of property, plant and equipment (0.1) (0.1) - Increase in inventories (2.3) (2.0) (0.6) Increase in trade and other receivables (8.8) (9.2) (1.4) (Decrease) / increase in trade and other payables (2.6) 1.5 (6.4) Share-based payments 1.1 0.8 2.4 Decrease in provisions (0.2) (0.3) (0.5)Cash generated from operations 64.4 65.1 154.4 Interest paid (5.8) (3.7) (7.9)Taxation paid (2.8) (3.3) (6.6)Net cash generated from operating activities 55.8 58.1 139.9 Cash flows from investing activities Acquisition of business (including net of cash acquired) - (0.2) (0.2)Purchase of other intangible assets (4.4) (2.9) (3.4)Purchase of property, plant and equipment (17.4) (23.8) (35.8)Purchase of software - - (0.1)Proceeds from sale of property, plant and equipment 0.2 0.1 0.2 Purchase of textile rental items (32.3) (30.7) (65.8) Proceeds received in respect of special charges 0.8 1.0 2.1 Net cash used in investing activities (53.1) (56.5) (103.0) Cash flows from financing activities Proceeds from borrowings 64.9 52.0 96.8 Repayments of borrowings (45.4) (22.5) (55.3)Capital element of leases (3.1) (3.4) (7.1)Share buyback (12.7) (16.8) (54.7)Purchase of own shares by EST (0.2) (0.1) (0.1)Proceeds from issue of share capital 0.7 0.4 0.3 Dividends paid to company shareholders (12.2) (11.1) (17.4)Net cash used in financing activities (8.0) (1.5) (37.5) Net (decrease) / increase in cash and cash equivalents (5.3) 0.1 (0.6)Cash and cash equivalents at beginning of the period 1.9 2.2 2.2 Effect of exchange rate fluctuations on cash held 0.1 0.2 0.3 Cash and cash equivalents at end of the period 18 (3.3) 2.5 1.9 Cash and cash equivalents comprise: Cash 6.4 11.5 11.0 Overdraft (9.7) (9.0) (9.1)Cash and cash equivalents at end of the period (3.3) 2.5 1.9 The notes on pages 18 to 34 form an integral part of these condensed consolidated interim financial statements. Notes to the Condensed Consolidated Interim Financial Statements
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Johnson Service Group PLC (the ‘Company’) and its subsidiaries (together ‘the Group’) provide textile rental and related servicesacross the United Kingdom (‘UK’) and the Republic of Ireland (‘ROI’). The Company is incorporated and domiciled in the UK, its registered number is 523335 and the address of its registered office isJohnson House, Abbots Park, Monks Way, Preston Brook, Cheshire, WA7 3GH. The Company is a public limited company andhas its primary listing on the Main Market of the London Stock Exchange. The condensed consolidated interim financial statements were authorised for issue by the Board on 8 September 2026. 1 BASIS OF PREPARATION OverviewThese condensed consolidated interim financial statements of the Group are for the half year ended 30 June 2026. They havebeen prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34,’Interim Financial Reporting’, as adopted by the United Kingdom. The condensed consolidated interim financial statements have not been reviewed or audited, nor do they comprise statutoryaccounts for the purpose of Section 434 of the Companies Act 2006, and do not include all of the information or disclosuresrequired in the annual financial statements and should therefore be read in conjunction with the Group’s 2025 Annual Report andAccounts, which was prepared in accordance with UK-adopted international accounting standards. Financial information for the year ended 31 December 2025 included herein is derived from the statutory accounts for that year,which have been filed with the Registrar of Companies. The auditors’ report on those accounts was unqualified, did not contain anemphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006. Other than as described below, financial information for the half year ended 30 June 2025 included herein is derived from thecondensed consolidated interim financial statements for that period. Accounting Policies, Presentation and ComputationThe condensed consolidated interim financial statements have been prepared applying the accounting policies, presentation andmethods of computation applied by the Group in the preparation of the published consolidated financial statements for the yearended 31 December 2025. (a) TaxationTaxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annualearnings before exceptional items. Taxation on exceptional items is accrued as the exceptional items are recognised. Prioryear adjustments in respect of taxation are recognised when it becomes probable that such adjustment is needed. (b) Seasonality of operationsSeasonality or cyclicality could affect all of the businesses to varying extents however, the Directors do not consider suchseasonality or cyclicality to be significant in the context of the condensed consolidated interim financial statements. (c) Critical accounting estimates and assumptionsThe preparation of the condensed consolidated interim financial statements requires management to make judgments,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,income and expense. Actual results may differ from these estimates. Going ConcernBackground and SummaryAfter careful assessment, the Directors have adopted the going concern basis in preparing these condensed consolidated interimfinancial statements. The process and key judgments in coming to this conclusion are set out below. The Group’s business activities, together with details of the financial position of the Group, its cash flows, liquidity position andborrowing facilities, are described in the Financial and Operational Review. Going Concern AssessmentCash Flows, Covenants and Stress TestingFor the purposes of the going concern assessment, the Directors have prepared monthly cash flow projections for the period to 31December 2027 (the assessment period). The Directors consider 18 months to be a reasonable period for the going concernassessment as it enables them to consider the potential impact of macroeconomic and geopolitical factors over an extendedperiod. The cash flow projections show that the Group has significant headroom against its committed facilities and can meet itsfinancial covenant obligations. The Group has also performed a reverse stress test against the base monthly cash flow projections referred to above in order todetermine the performance level that would result in a reduction in headroom against its committed facilities to nil or a breach of itscovenants. The facility headroom would reduce to nil in the event that adjusted operating profit reduced to approximately 75% of2025 levels. The Directors do not consider this scenario to be likely. As a further stress test, the Group considered the impact of increasing interest rates. The Directors do not consider the magnitudeof the increase in interest rates that would be required in order for a covenant to be breached, or the facility headroom to reduce tonil, to be plausible. Each of the stress tests assume no mitigating actions are taken. Mitigating actions available to the Group, should they be required,include reductions in discretionary capital expenditure and ceasing dividend payments. 1 BASIS OF PREPARATION (continued) LiquidityThe Group has access to a committed Revolving Credit Facility of £175.0 million (the ‘Facility’) which matures in April 2030. Theterms of the Facility provide an option to extend the term for a further year and an option to increase the Facility by up to a further£50.0 million, both with lender consent. The Facility is considerably in excess of our anticipated borrowings and provides ampleliquidity for current commitments. Going Concern StatementAfter considering the monthly cash flow projections, the stress tests and the facilities available to the Group, the Directors have areasonable expectation that the Group has adequate resources for its operational needs, will remain in compliance with thefinancial covenants set out in the bank facility agreement and will continue in operation for at least the period to 31 December2027. Accordingly, and having reassessed the principal risks and uncertainties, the Directors considered it appropriate to adopt thegoing concern basis in preparing the condensed consolidated interim financial statements. Alternative Performance Measures (APMs)Overview of APMsThroughout this Interim Statement, and consistent with prior years, we refer to a number of APMs. APMs are used by the Group toprovide further clarity and transparency of the Group's financial performance. The APMs are used internally by management tomonitor business performance, budgeting and forecasting, and to determine the Directors' remuneration and that of othermanagement throughout the business. The APMs, which are not recognised under UK-adopted international accountingstandards, are:‘adjusted operating profit’, which refers to continuing operating profit/(loss) before amortisation of intangible assets (excludingsoftware amortisation), and exceptional items;‘adjusted profit before taxation’, which refers to adjusted operating profit less finance cost;‘adjusted EBITDA’, which refers to adjusted operating profit plus the depreciation charge for property, plant and equipment,textile rental items and right of use assets, plus software amortisation;‘adjusted diluted EPS’, which refers to EPS calculated based on adjusted profit after taxation; and‘net debt excluding IFRS 16 lease liabilities’ The Board considers that the above APMs, all of which exclude the effects of non-recurring items or non-operating events, provideuseful information for stakeholders on the underlying trends and performance of the Group and facilitate meaningful year on yearcomparisons. Limitations of APMsThe Board is cognisant that APMs do have limitations and should not be regarded as a complete picture of the Group’s financialperformance. Limitations of APMs may include, inter alia:similarly named measures may not be comparable across companies;profit-related APMs may exclude significant, sometimes recurring, business transactions (e.g. restructuring charges andacquisition-related costs) that impact financial performance and cash flows; andadjusted operating profit, adjusted profit before taxation, adjusted EBITDA and adjusted EPS all exclude the amortisation ofintangibles acquired in business combinations, but do not similarly exclude the related revenue. Reconciliation of APMs to Statutory Performance MeasuresReconciliations between the above APMs and statutory performance measures are reconciled within this Interim Statement asfollows:Adjusted operating profit – note 2Adjusted profit before taxation – note 5Adjusted EBITDA – note 5Adjusted EPS – note 8Net debt excluding IFRS 16 lease liabilities – note 18.
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2 SEGMENT ANALYSIS Segment information is presented based on the Group’s management and internal reporting structure as at 30 June 2026. The chief operating decision-maker (CODM) has been identified as the Executive Directors. The CODM reviews the Group’sinternal reporting in order to assess performance and allocate resources. The CODM determines the operating segments basedon these reports and on the internal reporting structure. For reporting purposes, the CODM considered the aggregation criteria set out within IFRS 8, ‘Operating Segments’, which allowsfor two or more operating segments to be combined as a single reporting segment if:1) aggregation provides financial statement users with information that allows them to evaluate the business and theenvironment in which it operates; and2) they have similar economic characteristics (for example, where similar long-term average gross margins would be expected)and are similar in each of the following respects:the nature of the products and services;the nature of the production processes;the type or class of customer for their products and services;the methods used to distribute their products or provide their services; andthe nature of the regulatory environment (i.e. banking, insurance or public utilities), if applicable. The CODM deems it appropriate to present two reporting segments (in addition to ‘Discontinued Operations’ and ‘All OtherSegments’), being:1) Hotel, Restaurant and Catering (‘HORECA’): comprising of our Johnsons Hotel, Restaurant and Catering Linen, JohnsonsHotel Linen, Johnsons Luxury Linen and Johnsons Ireland businesses, each of which are a separate operating segment.2) Workwear: comprising of our Johnsons Workwear business only; and The CODM’s rationale for aggregating the Johnsons Hotel Linen, Johnsons Hotel, Restaurant and Catering Linen, JohnsonsLuxury Linen and Johnsons Ireland operating segments into a single reporting segment is set out below:the gross margins of each operating segment are within a similar range, with the long-term average margin expected to furtheralign;the nature of the customers, products and production processes of each operating segment are very similar;the nature of the regulatory environment is the same due to the similar nature of products, processes and customers involved;anddistribution is via exactly the same method across each operating segment. The CODM assesses the performance of the reporting segments based on a measure of operating profit, both including andexcluding the effects of non-recurring items from the reporting segments, such as restructuring costs and impairments when theimpairment is the result of an isolated, non-recurring or non-operating event. Interest income and expenditure are not included inthe result for each reporting segment that is reviewed by the CODM. Segment results include items directly attributable to asegment as well as those that can be allocated on a reasonable basis, for example rental income received by Johnson GroupProperties PLC (the property holding company of the Group) is credited back, where appropriate, to the paying company for thepurpose of segmental reporting. There have been no changes in the measurement methods used compared to the prior year. Other information provided to the CODM is measured in a manner consistent with that in the financial statements. Segment assetsexclude deferred income tax assets, post-employment benefit assets, derivative financial assets, current income tax assets andcash and cash equivalents, all of which are managed on a central basis. Segment liabilities include lease liabilities but excludebank borrowings, derivative financial liabilities, post-employment benefit obligations and deferred income tax liabilities, all of whichare managed on a central basis. These balances are part of the reconciliation to total assets and liabilities. 2 SEGMENT ANALYSIS (continued) The reporting segment results for the half year ended 30 June 2026, together with comparative figures, are as follows: Half year to 30 June 2026 HORECA Workwear All OtherSegments Total £m £m £m £m Revenue Rendering of services 183.8 72.3 - 256.1 Sale of goods 0.2 1.7 - 1.9 Total revenue 184.0 74.0 - 258.0 Cost of sales (110.4) (44.3) - (154.7)Distribution costs (30.9) (10.7) - (41.6)Administrative costs (19.3) (8.0) (4.6) (31.9)Operating profit / (loss) before amortisation of intangible assets(excluding software amortisation) and exceptional items 23.4 11.0 (4.6) 29.8 Amortisation of intangible assets (excluding software amortisation) (3.9) - - (3.9)Exceptional items (0.2) - (0.4) (0.6)Operating profit / (loss) 19.3 11.0 (5.0) 25.3 Net finance cost (4.5) Profit before taxation 20.8 Taxation charge (5.9)Profit for the period attributable to equity holders 14.9 All of the above revenues are generated in the United Kingdom, with the exception of £17.2 million generated within the Republic of Ireland. HORECA Workwear All OtherSegments Total £m £m £m £mBalance sheet information Segment assets 404.4 184.5 2.1 591.0Unallocated assets: Derivative financial assets 0.3 Post-employment benefit 7.6 Current income tax assets 0.6 Cash and cash equivalents 6.4Total assets 605.9 Segment liabilities (91.0) (55.3) (5.8) (152.1)Unallocated liabilities: Bank borrowings (142.3) Post-employment benefit obligations (0.2) Deferred income tax liabilities (42.0)Total liabilities (336.6) HORECA Workwear All OtherSegments Total £m £m £m £mOther information Non-current asset additions - Property, plant and equipment 16.2 4.0 - 20.2 - Right of use assets (including reassessment / modification) 0.4 8.8 - 9.2 - Textile rental items 17.3 10.2 - 27.5 - Customer Contracts 4.4 - - 4.4 Depreciation and amortisation expense - Property, plant and equipment 10.4 3.0 - 13.4 - Right of use assets 2.3 1.3 0.1 3.7 - Textile rental items 19.8 11.2 - 31.0 - Customer contracts and brands 3.9 - - 3.9 With the exception of non-current assets of £19.7 million which were located in the Republic of Ireland, all non-current assets of the Groupreside in the Group’s country of domicile, the United Kingdom. 2 SEGMENT ANALYSIS (continued) Half year to 30 June 2025 HORECA Workwear All OtherSegments Total £m £m £m £m
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Revenue Rendering of services 185.3 70.6 - 255.9 Sale of goods 0.1 1.5 - 1.6 Total revenue 185.4 72.1 - 257.5 Cost of sales (111.9) (43.9) - (155.8) Distribution costs (32.0) (10.2) - (42.2) Administrative costs (19.0) (7.6) (4.2) (30.8)Operating profit / (loss) before amortisation of intangible assets(excluding software amortisation) and exceptional items 22.5 10.4 (4.2) 28.7 Amortisation of intangible assets (excluding software amortisation) (4.0) - - (4.0) Exceptional items (0.4) (0.3) (0.3) (1.0) Operating profit / (loss) 18.1 10.1 (4.5) 23.7 Net finance cost (3.8) Profit before taxation 19.9 Taxation charge (5.3) Profit for the period attributable to equity holders 14.6 All of the above revenues are generated in the United Kingdom, with the exception of £17.8 million generated within the Republic of Ireland. HORECA Workwear All OtherSegments Total £m £m £m £m Balance sheet information Segment assets 404.3 162.2 2.1 568.6 Unallocated assets: Post-employment benefit 6.7 Current income tax assets 0.8 Cash and cash equivalents 11.5 Total assets 587.6 Segment liabilities (100.2) (40.3) (9.0) (149.5) Unallocated liabilities: Bank borrowings (110.5) Derivative financial liabilities (0.6) Post-employment benefit obligations (0.3) Deferred income tax liabilities (32.9) Total liabilities (293.8) HORECA Workwear All OtherSegments Total £m £m £m £m Other information Non-current asset additions - Property, plant and equipment 21.2 3.3 - 24.5 - Right of use assets (including reassessment / modification) 0.1 2.3 - 2.4 - Textile rental items 19.7 11.6 - 31.3 - Customer contracts 3.1 - - 3.1 Depreciation and amortisation expense - Property, plant and equipment 9.5 2.8 - 12.3 - Right of use assets 2.2 1.5 - 3.7 - Textile rental items 19.4 11.0 - 30.4 - Capitalised software 0.1 0.2 - 0.3 - Customer contracts and brands 4.0 - - 4.0 With the exception of non-current assets of £17.0 million which were located in the Republic of Ireland, all non-current assets of the Groupreside in the Group’s country of domicile, the United Kingdom. 2 SEGMENT ANALYSIS (continued) Year ended 31 December 2025 HORECA Workwear All OtherSegments Total £m £m £m £m Revenue Rendering of services 389.5 141.9 - 531.4 Sale of goods 0.3 3.7 - 4.0 Total revenue 389.8 145.6 - 535.4 Cost of Sales (227.9) (87.9) - (315.8) Distribution costs (64.3) (20.9) - (85.2) Administrative costs (37.8) (15.8) (8.3) (61.9)Operating profit / (loss) before amortisation of intangible assets(excluding software amortisation) and exceptional items 59.8 21.0 (8.3) 72.5 Amortisation of intangible assets (excluding software amortisation) (7.7) - - (7.7)Exceptional items (2.1) (1.8) (2.1) (6.0) Operating profit / (loss) 50.0 19.2 (10.4) 58.8 Net finance cost (8.0) Profit before taxation 50.8 Taxation charge (13.8) Profit for the period from continuing operations 37.0 Profit for the period from discontinued operations 0.1 Profit for the period attributable to equity holders 37.1 All of the above revenues are generated in the United Kingdom, with the exception of £37.5 million generated within the Republic of Ireland. HORECA Workwear All OtherSegments Total £m £m £m £m Balance sheet information Segment assets 397.2 164.2 1.8 563.2 Unallocated assets: Post-employment benefit assets 4.9 Current income tax assets 0.4 Cash and cash equivalents 11.0 Total assets 579.5 Segment liabilities (99.4) (39.8) (3.4) (142.6) Unallocated liabilities: Bank borrowings (123.4)
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Derivative financial liabilities (0.3) Post-employment benefit obligations (0.3) Deferred income tax liabilities (37.8) Total liabilities (304.4) HORECA Workwear All OtherSegments Total £m £m £m £m Other information Non-current asset additions - Property, plant and equipment 28.3 5.3 - 33.6- Right of use assets (including reassessment /modifications) 3.7 2.9 0.4 7.0 - Textile rental items 42.6 27.2 - 69.8 - Customer contracts 3.4 - - 3.4 Depreciation, impairment and amortisation expense - Property, plant and equipment 19.3 5.8 - 25.1 - Right of use assets depreciation 4.8 2.8 0.1 7.7 - Textile rental items depreciation 38.9 22.3 - 61.2 - Capitalised software 0.1 0.2 - 0.3 - Customer contracts 7.7 - - 7.7 With the exception of non-current assets of £18.0 million which were located in the Republic of Ireland, all non-current assets of the Groupreside in the Group’s country of domicile, the United Kingdom. 3 EXCEPTIONAL ITEMS Half year to30 June2026£m Half year to30 June2025£m Year ended 31 December2025£m Costs in relation to business acquisition activity (0.4) - (0.5) Reorganisation costs (0.2) (0.7) (3.4)Costs in relation to Main Market listing - (0.3) (1.7)Insurance claims - - (0.4)Total exceptional items (0.6) (1.0) (6.0) Current year exceptional itemsCosts in relation to business acquisition activityThe cost increases being experienced across UK businesses are encouraging some of our smaller, independent competitors toreview their business strategy which, as a result, allowed us to add contracts with an annualised revenue of over £5.0 million to ourHORECA division during the period. Professional and transitional service fees of £0.3 million were incurred in relation to thosecontract acquisitions. A further £0.1 million was incurred in respect of other business acquisition related activities. Reorganisation costs£0.2 million of reorganisation costs have been incurred across the Group during the period. Prior year exceptional itemsCosts in relation to business acquisition activityIn the prior period, we added contracts with an annualised revenue of some £4.9 million to our HORECA division during the year.Professional and transitional service fees of £0.3 million were incurred in relation to those contract acquisitions. A further £0.2million was incurred in respect of other business acquisition related activities. Reorganisation costsThe project to relocate our Workwear operations from Lancaster to Manchester, and the subsequent closure of the Lancaster site,resulted in the recognition of £1.4 million of reorganisation costs during the prior year, of which £0.3 million was recognised in thehalf year to 30 June 2025. Reorganisation costs of £0.9 million were incurred during the period in relation to the contract acquisitions referred to above, ofwhich £0.4 million was recognised in the half year to 30 June 2025. A further £1.1 million of reorganisation costs were incurred across the Group during the prior year. Costs in relation to Main Market listingCosts of £1.7 million were incurred during the prior year in relation to the Company’s ordinary shares being admitted to the EquityShares (Commercial Companies) Category of the Official List of the Financial Conduct Authority and to trading on the Main Marketof the London Stock Exchange, which occurred on 1 August 2025, of which £0.3 million was recognised in the half year to 30 June2025. Insurance claimsAt the end of June 2025, our small industrial workwear processing unit in Bristol suffered a fire which rendered part of the siteinoperable. Costs of £0.4 million were recognised within exceptional items. In accordance with UK-adopted international accountingstandards, related insurance proceeds will be recognised when it is deemed virtually certain that they will be received. 4 NET FINANCE COST Half year to30 June2026£m Half year to30 June2025£m Year ended31 December2025£m Interest payable on bank loans and overdrafts (2.8) (2.4) (5.2)Amortisation of bank facility fees (0.2) (0.2) (0.4)Finance costs on IFRS 16 lease liabilities (1.6) (1.3) (2.6)Finance cost (4.6) (3.9) (8.2) Notional interest income on post-employment benefit obligations 0.1 0.1 0.2 Finance income 0.1 0.1 0.2 Net Finance cost (4.5) (3.8) (8.0) 5 ALTERNATIVE PERFORMANCE MEASURES (APMs) Adjusted profit before and after taxation (continuing) Half year to30 June2026£m Half year to30 June2025£m Year ended31 December2025£m Profit before taxation (continuing) 20.8 19.9 50.8 Amortisation of intangible assets (excluding software amortisation) 3.9 4.0 7.7 Exceptional items 0.6 1.0 6.0 Adjusted profit before taxation (continuing) 25.3 24.9 64.5 Taxation thereon (6.2) (6.0) (15.6)Adjusted profit after taxation (continuing) 19.1 18.9 48.9
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Adjusted EBITDA Half year to30 June2026£m Half year to30 June2025£m Year ended31 December2025£m Operating profit before amortisation of intangible assets (excludingsoftware amortisation) and exceptional items 29.8 28.7 72.5 Software amortisation - 0.3 0.3 Property, plant and equipment depreciation 13.4 12.3 25.1 Right of use asset depreciation 3.7 3.7 7.7 Textile rental items depreciation 31.0 30.4 61.2 Adjusted EBITDA 77.9 75.4 166.8 6 DIVIDENDS Half year to30 June2026 Half year to30 June2025 Year ended31 December2025Dividend per share (pence) 2026 Interim dividend declared 1.8 - - 2025 Interim dividend declared and paid - 1.6 1.62025 Final dividend proposed and paid - - 3.2 1.8 1.6 4.8 Half year to30 June2026 Half year to30 June2025 Year ended31 December2025Shareholders’ funds committed (£m) 2026 Interim dividend declared 6.5 - - 2025 Interim dividend declared and paid - 6.3 6.32025 Final dividend declared and paid - - 12.2 On 12 May 2026, a final dividend in respect of the year ended 31 December 2025 of 3.2 pence per share was paid toShareholders, utilising £12.2 million of Shareholders’ funds. The Directors are declaring an interim dividend in respect of the year ended 31 December 2026 of 1.8 pence per Ordinary sharewhich, based on the number of shares in issue as at the date of this report, will reduce Shareholders’ funds by £6.5 million. However, given the ongoing share buyback programme, it is anticipated that the actual distribution could be less than this amount. The dividend will be paid on 6 November 2026 to Shareholders on the register of members at the close of business on 9 October2026. The trustee of the EST has waived the entitlement to receive dividends on the Ordinary shares held by the trust. In accordance with IAS 10, there is no payable recognised at 30 June 2026 in respect of this proposed dividend. 7 TAXATION Half year to30 June2026£m Half year to30 June2025£m Year ended31 December2025£m Current tax UK corporation tax charge for the period 2.5 2.0 5.9 Adjustment in relation to previous years - - (0.3)Current tax charge for the period 2.5 2.0 5.6 Deferred tax Origination and reversal of temporary differences 3.4 3.3 7.9 Adjustment in relation to previous years - - 0.3 Deferred tax charge for the period 3.4 3.3 8.2 Total charge for taxation included in the Consolidated Income Statementfor continuing operations 5.9 5.3 13.8 Taxation in relation to the amortisation of intangible assets (excluding software amortisation) has reduced the charge for taxation oncontinuing operations in the half year to 30 June 2026 by £0.3 million (June 2025: £0.5 million; December 2025: £0.9 million). Taxation in relation to exceptional items has £nil impact on the charge for taxation on continuing operations (June 2025: £0.2million; December 2025: £0.9 million). During the half year to 30 June 2026, a £0.6 million charge relating to deferred taxation (June 2025: £0.6 million; December 2025:£0.5 million credit) has been recognised in other comprehensive income. In addition, a £nil charge relating to deferred taxation(June 2025: £0.2 million; December 2025: £0.2 million) and £nil charge relating to current taxation (June 2025: £nil; December2025; £0.1 million credit) has been recognised directly in reserves. Reconciliation of effective tax rateThe main rate of corporation tax in the UK is 25.0%, whilst in the Republic of Ireland it is 12.5%. Taxation on non-exceptional items for the half year to 30 June 2026 is calculated based on the estimated average annual effectivetax rate of 24.5% (June 2025: 24.1%; December 2025: 25.8%). The effective tax rate is impacted by a number of factors, includingexpenses not deductible for taxation, non-UK taxable profits and short-term timing differences, with first year capital allowances inthe period reflecting full expensing relief impacting upon the estimated pattern of reversal of the Group’s deferred tax assets andliabilities. 8 EARNINGS PER SHARE Half year to30 June2026£m Half year to 30 June2025£m Year ended31 December 2025£m Profit for the period from continuing operations attributable to Shareholders 14.9 14.6 37.0 Amortisation of intangible assets from continuing operations (net of taxation) 3.6 3.5 6.8 Exceptional items from continuing operations (net of taxation) 0.6 0.8 5.1 Adjusted profit from continuing operations attributable to Shareholders 19.1 18.9 48.9 Profit from discontinued operations attributable to Shareholders - - 0.1 Total adjusted profit from all operations attributable to Shareholders 19.1 18.9 49.0 Numberof shares Numberof shares Numberof sharesWeighted average number of Ordinary shares 378,138,759 412,138,841 401,128,215Potentially dilutive Ordinary shares 1,732,687 132,124 1,747,031Diluted number of Ordinary shares 379,871,446 412,270,965 402,875,246 Basic earnings per share Penceper share Penceper share Penceper shareFrom continuing operations 4.0p 3.6p 9.3pFrom discontinued operations - - - From total operations 4.0p 3.6p 9.3p Adjustment for amortisation of intangibles assets (continuing) 0.8p 0.8p 1.7pAdjustment for exceptional items (continuing) 0.2p 0.2p 0.2p Adjusted basic earnings per share (continuing) 5.0p 4.6p 12.2p
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Adjusted basic earnings per share (discontinued) - - - Adjusted basic earnings per share from total operations 5.0p 4.6p 12.2p Diluted earnings per share From continuing operations 3.9p 3.6p 9.2pFrom discontinued operations - - - From total operations 3.9p 3.6p 9.2pAdjustments for amortisation of intangibles assets (continuing) 0.9p 0.8p 1.7pAdjustment for exceptional items (continuing) 0.2p 0.2p 0.2p Adjusted diluted earnings per share (continuing) 5.0p 4.6p 12.1pAdjusted basic earnings per share (discontinued) - - - Adjusted diluted earnings per share from total operations 5.0p 4.6p 12.1p Basic earnings per share is calculated using the weighted average number of Ordinary shares in issue during the period, excludingthose held by the Employee Share Trust, based on the profit for the period attributable to Shareholders. Adjusted earnings per share figures are given to exclude the effects of amortisation of intangible assets (excluding softwareamortisation) and exceptional items, all net of taxation, and are considered to show the underlying performance of the Group. For diluted earnings per share, the weighted average number of Ordinary shares in issue is adjusted to assume conversion of allpotentially dilutive Ordinary shares. The Company has potentially dilutive Ordinary shares arising from share options granted toemployees. Options are dilutive under the SAYE scheme, where the exercise price together with the future IFRS 2 charge of theoption is less than the average market price of the Company’s Ordinary shares during the period. Options under the LTIP schemes,as defined by IFRS 2, are contingently issuable shares and are therefore only included within the calculation of diluted earnings pershare if the performance conditions, as set out in the Directors’ Remuneration Report within the 2025 Annual Report and Accounts,are satisfied at the end of the reporting period, irrespective of whether this is the end of the vesting period or not. Potentially dilutive Ordinary shares are dilutive at the point, from a continuing operations level, when their conversion to Ordinaryshares would decrease earnings per share or increase loss per share. For the periods ended 30 June 2026 and 30 June 2025,and the year ended 31 December 2025, potentially dilutive Ordinary shares have been treated as dilutive, as their inclusion in thediluted earnings per share calculation decreases the earnings per share from continuing operations. Subsequent to the balance sheet date, the Company purchased and cancelled a further 10.7 million shares as part of its ongoingshare buyback programme. Had those shares been purchased at the balance sheet date, the weighted average number ofOrdinary shares disclosed above would not have changed significantly. There were no other events occurring after the balancesheet date that would have changed significantly the number of Ordinary shares or potentially dilutive Ordinary shares outstandingat the balance sheet date if those transactions had occurred before the end of the reporting period. 9 GOODWILL As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Cost Brought forward 155.4 155.0 155.0 Impact of foreign exchange translation (0.1) 0.2 0.4 155.3 155.2 155.4 Impairment Brought forward 1.4 1.4 1.4 Impairment - - - 1.4 1.4 1.4 Closing 153.9 153.8 154.0 In accordance with UK-adopted international accounting standards, goodwill is not amortised but instead is tested annually forimpairment, or upon the existence of indicators of impairment per IAS 36, and carried at cost less accumulated impairment losses. Management has reviewed the indicators of impairment per IAS 36 and do not believe that any have been triggered since 31December 2025 and, as such, no impairment review has been carried out as at 30 June 2026. In line with the requirements of IAS36, a full impairment review will be performed during the second half of the year. 10 INTANGIBLE ASSETS Capitalised software As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening net book value 0.3 0.6 0.6 Amortisation - (0.3) (0.3)Closing net book value 0.3 0.3 0.3 Other intangible assets As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening net book value 24.6 28.4 28.4 Additions 4.4 3.1 3.4 Foreign exchange differences (0.1) 0.3 0.5 Amortisation (3.9) (4.0) (7.7)Closing net book value 25.0 27.8 24.6 Total 25.3 28.1 24.9 Other intangible assets comprise the fair value of customer contracts and relationships and brands arising from businesscombinations, together with the fair value of customer contracts acquired not as part of a business combination. 11 PROPERTY, PLANT AND EQUIPMENT As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening net book value 168.9 160.0 160.0 Foreign exchange differences (0.3) 0.4 0.6 Additions 20.2 24.5 33.6 Depreciation (13.4) (12.3) (25.1)Disposals (0.1) - (0.2)Closing net book value 175.3 172.6 168.9
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The transfer of assets from right of use assets represents the reclassification of the cost of assets from right of use assets wherethe lease was repaid in the period and the asset is now owned. CAPITAL COMMITMENTS The value of orders placed for future capital expenditure contracted but not provided for in the financial statements is shown below: As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Property, plant and equipment 14.6 4.7 10.3 12 RIGHT OF USE ASSETS As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening net book value 42.3 43.0 43.0 Additions 9.1 1.0 6.2 Reassessment/modifications of assets previously recognised 0.1 1.4 0.8 Depreciation (3.7) (3.7) (7.7)Closing net book value 47.8 41.7 42.3 13 TEXTILE RENTAL ITEMS As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening net book value 80.0 73.4 73.4 Foreign exchange differences - - 0.1 Additions 27.5 31.3 69.8 Depreciation (31.0) (30.4) (61.2)Special charges (0.8) (1.0) (2.1)Closing net book value 75.7 73.3 80.0 14 POST-EMPLOYMENT BENEFITS The Group has applied the requirements of IAS 19, ‘Employee Benefits’ to its employee pension schemes and post-employmenthealthcare benefits. In the half year to 30 June 2026, no deficit recovery payments were paid by the Group to the defined benefit scheme (June 2025:£nil; December 2025: £nil). Following discussions with the Group’s appointed actuary, a re-measurement gain of £2.6 million has been recognised in the halfyear to 30 June 2026. The improvement in the position from 31 December 2025 is mainly driven by an increase in the discountrate assumption, due to increases in corporate bond yields, offset with a slight decrease in the inflation rate assumption. The post-employment benefit asset and associated deferred income tax liability thereon are shown below: As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Post-employment benefit asset 7.4 6.4 4.6 Deferred income tax liability thereon (1.9) (1.6) (1.2) 5.5 4.8 3.4 The reconciliation of the opening gross post-employment benefit asset to the closing gross post-employment benefit asset is shownbelow: As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Opening post-employment benefit asset 4.6 3.5 3.5 Notional interest 0.1 0.1 0.2 Re-measurement and experience gains 2.6 2.8 0.9 Post-retirement Healthcare benefits movement 0.1 - - Closing post-employment benefit surplus 7.4 6.4 4.6 Post-employment benefit assets / (obligations) are comprised of the following balance sheet amounts: As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Post-employment benefit assets (Non-current assets) 7.6 6.7 4.9 Post-employment benefit obligations (Non-current liabilities) (0.2) (0.3) (0.3) 7.4 6.4 4.6 15 SHARE CAPITAL Issued share capital is as follows: Half year to30 June2026 Half year to30 June2025 Year ended31 December2025 £m £m £m Share capital at the start of the period 37.8 41.5 41.5 New shares issued 0.2 0.2 0.1 Share buyback (0.8) (1.2) (3.8)Share capital at the end of the period 37.2 40.5 37.8
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In September 2025, the Group commenced a share buyback programme to repurchase up to £25.0 million (excluding expenses) ofits own shares. This programme was still in operation at the start of the period. During the period to 30 June 2026, 505,437Ordinary shares with a total nominal value of £50,544 were bought back and immediately cancelled as part of this programme for atotal consideration, including transaction costs of £0.7 million. In May 2026, the Group commenced a further share buyback programme to repurchase up to £55.0 million (excluding expenses) ofits own shares. During the period to 30 June 2026, 7,893,309 Ordinary shares with a total nominal value of £789,331 were boughtback, and immediately cancelled, by the Company for a total consideration, including transaction costs, of £12.0 million. The7,893,309 Ordinary shares repurchased as part of the share buyback programme represents 2.1% of the Company’s share capitalin issue prior to commencement of the share buyback programme. 16 BUSINESS COMBINATIONS There have been no business combinations in the half year to 30 June 2026. 17 BORROWINGS At 30 June 2026, borrowings were secured and drawn down under a committed facility dated 2 April 2026. The facility comprisedof a £175.0 million rolling credit facility (including two net overdraft facilities for £5.0 million and £3.0 million) which runs to April2030, and options, subject to bank consent, to extend the term by a further year and to increase the facility by up to an additional£50.0 million. Individual tranches are drawn down, in Sterling or Euros, for periods of up to six months at SONIA or Euribor rates of interest, asapplicable, prevailing at the time of drawdown, plus the credit adjustment spread and the applicable margin. The margin on thefacility ranges between 1.30% and 2.30%. Margin is determined on the achievement of leverage ratios. The secured bank loans are stated net of unamortised issue costs of £1.3 million (30 June 2025: £0.3 million; 31 December 2025:£0.1 million) of which £0.5 million is included within current borrowings (30 June 2025: £0.2 million; 31 December 2025: £0.1million) and £0.8 million is included within non-current borrowings (30 June 2025: £0.1 million; 31 December 2025: £nil). Details ofthe security are provided in note 21. Amounts drawn under the revolving credit facility have been classified as either current or non-current depending upon when theloan is expected to be repaid. 18 ANALYSIS OF NET DEBT Net debt is calculated as total borrowings, net of unamortised bank facility fees, less cash and cash equivalents. Non-cashchanges represent the effects of the recognition and subsequent amortisation of fees relating to the bank facility, changingmaturity profiles, debt acquired as part of an acquisition and the recognition of lease liabilities entered into during the period. June 2026 At1 January2026 CashFlow Non-cashChanges ForeignExchangeAdjustments At30 June2026 £m £m £m £m £m Debt due within one year 0.1 - 0.4 - 0.5 Debt due after more than one year (114.4) (19.5) 0.4 0.4 (133.1)Lease liabilities (46.8) 3.1 (9.0) - (52.7)Total debt and lease financing (161.1) (16.4) (8.2) 0.4 (185.3)Cash and cash equivalents 1.9 (5.3) - 0.1 (3.3)Net debt (159.2) (21.7) (8.2) 0.5 (188.6) June 2025 At1 January2025 CashFlow Non-cashChanges ForeignExchangeAdjustments At30 June2025 £m £m £m £m £m Debt due within one year 0.4 - (0.2) - 0.2 Debt due after more than one year (71.2) (29.5) - (1.0) (101.7)Lease liabilities (47.0) 3.4 (2.4) - (46.0)Total debt and lease financing (117.8) (26.1) (2.6) (1.0) (147.5)Cash and cash equivalents 2.2 0.1 - 0.2 2.5 Net debt (115.6) (26.0) (2.6) (0.8) (145.0) December 2025 At1 January2025 CashFlow Non-cashChanges ForeignExchangeAdjustments At 31December2025 £m £m £m £m £m Debt due within one year 0.4 - (0.3) - 0.1 Debt due after more than one year (71.2) (41.5) (0.1) (1.6) (114.4)Lease liabilities (47.0) 7.1 (6.9) - (46.8)Total debt and lease financing (117.8) (34.4) (7.3) (1.6) (161.1)Cash and cash equivalents 2.2 (0.6) - 0.3 1.9 Net debt (115.6) (35.0) (7.3) (1.3) (159.2) As at 30 June2026 As at30 June2025 As at31 December2025 £m £m £m Net debt (188.6) (145.0) (159.2)Add back: IFRS 16 lease liabilities 52.7 46.0 46.8 Net debt excluding IFRS 16 lease liabilities (135.9) (99.0) (112.4) 18 ANALYSIS OF NET DEBT (continued) The cash and cash equivalents figures are comprised of the following balance sheet amounts: As at 30 June2026 As at30 June2025 As at31 December2025 £m £m £m Cash (Current assets) 6.4 11.5 11.0 Overdraft (Borrowings, Current liabilities) (9.7) (9.0) (9.1) (3.3) 2.5 1.9 Lease liabilities are comprised of the following balance sheet amounts: As at30 June2026 As at30 June2025 As at31 December2025 £m £m £m Amounts due within one year (Lease liabilities, Current liabilities) (9.3) (6.8) (7.4)Amounts due after more than one year (Lease liabilities, Non-current liabilities) (43.4) (39.2) (39.4) (52.7) (46.0) (46.8)
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19 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Half year to30 June2026 Half year to30 June2025 Year ended31 December2025 £m £m £m (Decrease) / increase in cash in the period (5.3) 0.1 (0.6)Increase in debt and lease financing (16.4) (26.1) (34.4)Change in net debt resulting from cash flows (21.7) (26.0) (35.0)Debt acquired through purchase of customer contracts (0.4) - - Lease liabilities recognised during the period (9.0) (2.4) (6.9)Non-cash movement in unamortised bank facility fees 1.2 (0.2) (0.4)Foreign exchange adjustments 0.5 (0.8) (1.3)Movement in net debt during the period (29.4) (29.4) (43.6) Opening net debt (159.2) (115.6) (115.6)Closing net debt (188.6) (145.0) (159.2) 20 RELATED PARTY TRANSACTIONS Transactions during the period between the Company and its subsidiaries, which are related parties, have been conducted on anarm’s length basis and eliminated on consolidation. Full details of the Group’s related party relationships, transactions andbalances are given in the Group’s Annual Report and Accounts for the year ended 31 December 2025. There have been nomaterial changes in these relationships in the half year to 30 June 2026 or up to the date of this Report. Transactions with relatedparties have not had, and are not expected to have, a material effect on the financial performance or position of the Group. 21 CONTINGENT LIABILITIES The Group operates from a number of sites across the UK and the Republic of Ireland. Some of the sites have operated aslaundry sites for many years and historic environmental liabilities may exist. Such liabilities are not expected to give rise to anysignificant loss. The Group has granted its Bankers and Trustee of the Pension Scheme (the ‘Trustee’) security over the assets of the Group. Thepriority of security is as follows: first ranking security for £28.0 million to the Trustee ranking pari passu with up to £155.0 million of bank liabilities; andsecond ranking security for the balance of any remaining liabilities to the Trustee ranking pari passu with any remaining bankliabilities. 21 CONTINGENT LIABILITIES (continued) During the period of ownership of the Facilities Management division, the Company had given guarantees over the performance ofcertain contracts entered into by the division. As part of the disposal of the division, the purchaser agreed to pursue the release ortransfer of obligations under the guarantees and this remains in process. The sale and purchase agreement contains an indemnityfrom the purchaser to cover any loss in the event a claim is made prior to release. In the period until release, the purchaser is tomake a payment to the Company of £0.2 million per annum, reduced pro rata as guarantees are released. Such liabilities are notexpected to give rise to any significant loss. 22 EVENTS AFTER THE REPORTING PERIOD Subsequent to the balance sheet date, the Company purchased and cancelled a further 10.7 million shares as part of its ongoingshare buyback programme. There have been no other events that require disclosure in accordance with IAS10, ‘Events after the balance sheet date’. 23 PRINCIPAL RISKS AND UNCERTAINTIES Approach to Risk ManagementThe Board has overall accountability for ensuring that risk is effectively managed across the Group and, on behalf of the Board, theAudit Committee coordinates and reviews the effectiveness of the Group’s risk management process. Risks are reviewed by all of our businesses on an ongoing basis and are measured against a defined set of likelihood and impactcriteria. This is captured in consistent reporting formats enabling the Audit Committee to review and consolidate risk informationand summarise the principal risks and uncertainties facing the Group. Wherever possible, action is taken to mitigate, to anacceptable level, the potential impact of identified principal risks and uncertainties. The Board formally reviews the most significant risks facing the Group at its March and August meetings, or more frequently shouldnew matters arise. Throughout 2026 to date, the overall risk environment remained largely unchanged from that reported withinthe Group’s 2025 Annual Report. Risk AppetiteThe Board interprets appetite for risk as the level of risk that the Group is willing to take in order to meet its strategic goals. TheBoard communicates its approach to, and appetite for, risk to the business through the strategy planning process and the internalrisk governance and control frameworks. In determining its risk appetite, the Board recognises that a prudent and robust approachto risk assessment and mitigation must be carefully balanced with a degree of flexibility so that the entrepreneurial spirit which hasgreatly contributed to the success of the Group is not inhibited. Both the Board and the Audit Committee remain satisfied that theGroup’s internal risk control framework continues to provide the necessary element of flexibility without compromising the integrityof risk management and internal control systems. Emerging RisksThe Board has established processes for identifying emerging risks, and horizon scanning for risks that may arise over the mediumto long term. Emerging and potential changes to the Group’s risk profile are identified through the Group’s risk governanceframeworks and processes, and through direct feedback from management, including changing operating conditions, market andconsumer trends. Principal Risks and UncertaintiesThe principal risks and uncertainties affecting the Group are summarised below: Economic and Political ConditionsCost InflationFailure of StrategyRecruitment, Retention and Motivation of EmployeesLoss of a Processing FacilityCompetition and DisruptionInformation Systems and Technology Pandemic or Other National CrisisHealth & SafetyCompliance and FraudInsufficient Processing CapacityCustomer Sales and RetentionClimate Change and Energy Costs Full details of the above risks, together with details on how the Board takes action to mitigate each risk, were provided in our 2025Annual Report. These risks and uncertainties do not comprise all of the risks that the Group may face and are not necessarilylisted in any order of priority. Additional risks and uncertainties not presently known to the Board, or deemed to be less material,may also have an adverse effect on the Group. In accordance with the provisions of the UK Corporate Governance Code, the Board has taken into consideration the principal risksand uncertainties in the context of determining whether to adopt the going concern basis of preparation and when assessing thefuture prospects of the Group. 24 PUBLISHED FINANCIAL STATEMENTS There is no regulatory requirement to send out half-yearly reports to all Shareholders or to advertise the content in a nationalnewspaper. In order to reduce costs, the Company has taken advantage of this reporting regime and no longer publishes half-yearly reports for individual circulation to Shareholders. Information that would normally be included in a half-yearly report is madeavailable on the Company’s website at www.jsg.com.
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