Disposal

Johnson Service Group PLC 13 August 2003 13 August 2003 Johnson Service Group PLC Disposal of Johnsons Washroom Services Johnson Service Group PLC ('Johnson') announces that it has disposed of the business and specified assets of Johnsons Washroom Services Limited ('JWS') to PHS Group plc ('PHS') for a consideration of £13.7 million in cash, less a retention of £0.5 million to reflect the anticipated level of working capital and other adjustments at completion. The proceeds from this disposal will be used to reduce borrowings. JWS, which operates Johnson's washroom services business in Great Britain, has grown organically and by acquisition from its inception. Turnover and loss before tax of JWS in 2002 were £5.2 million and £0.8 million respectively and net assets including goodwill at December 2002, which are the subject of the transaction, were £8.7 million. The Board concluded that, although growth is achievable in this business, it will take considerable time and investment to reach the critical mass required to maximise profitability. The disposal of JWS enables the Group to concentrate its resources on its present and primary activities, which have been comprehensively reviewed by the new Chief Executive, Stuart Graham, and on the future development of the Group. On 11 August 2003 the Group disposed of Connacht Court Group Limited. The total proceeds from the disposal of Connacht Court Group and JWS amount to over £27 million. Johnson's results for the first half of 2003 are due to be announced on Friday 19 September 2003. Commenting on the disposal, Stuart Graham, CEO of Johnson said: 'Washroom Services is a high growth area for companies who have pure focus, a strong existing market share and resources. We were late entrants to this market and though well managed latterly the business only reached operational breakeven in August 2002. The double digit margin expectation for December 2003 would have required disproportionate effort with significant cash to sustain. Washroom Services would have continued to be small in size relative to the Group's main activities. 'My comprehensive review of the business completed during the Spring allowed for close analysis of all our companies. This in turn led to these disposal decisions that will benefit our Group in the medium and long term which are the natural extension of the short term actions already seen and taken this year.' Notes to Editors: Johnson is the UK's market leader in workwear textile rental and the nation's leading retail drycleaner. Other principal activities include the manufacture and sourcing of garments. Johnsons Cleaners, the drycleaning business, has approximately 500 units throughout Britain with a relatively small presence in Greater London and the South East of England. The acquisition by Johnson of Jeeves of Belgravia 'London's Finest Dry Cleaners' was announced on 12 May 2003. On 11 August 2003 the Group disposed of Connacht Court Group Limited, its textile rental business in the Republic of Ireland. Enquiries Johnson Service Group PLC Stuart Graham CEO Tel. 0151 933 6161 Mike Sutton CFO Hudson Sandler Wendy Baker Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange
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