Disposal of Airline Services

Johnson Service Group PLC 2 April 2001 2 April 2001 JOHNSON SERVICE GROUP PLC DISPOSAL OF AIRLINE SERVICES Johnson Service Group PLC, the UK's largest workwear rental company, announces the sale of the assets and business of Johnsons Airline Services to Aviation & Airport Services Limited for a consideration of some £3.5 million in cash with a subsequent cash adjustment dependent on the level of net assets at completion. The acquisition and subsequent disposal of Johnsons Airlines Services have been accounted for under the provisions of FRS 7 and therefore there is no effect on earnings. The net proceeds will be used to reduce borrowings. This disposal together with the sale of Dimensions Corporatewear at the end of last year for £15.2 million brings the total proceeds of the two Semara disposals to £18.7 million and completes the disposal programme. Johnsons Airline Services (formerly Sketchley Aircraft Services) was a division of Semara Holdings Plc which Johnson Service Group acquired in February 2000 for £103.5 million. The business cleans and packages blankets, linen, cutlery and headsets for airlines. These activities do not fit in with Johnson's core strategy. Johnsons Airline Services made a profit before tax for the 9 months to end December 2000 of £0.7 million and net assets at that date were £2.5 million. Richard Zerny, Chief Executive, Johnson Service Group PLC said: 'Over the past four years Johnson Service Group has changed significantly. The disposals of Airline Services now and Dimensions last year are in line with our stated strategy at the time of the acquisition of Semara. The Group is now focused on two market leading businesses in workwear rental and drycleaning. As I stated in the preliminary announcement on 23rd March the acquisition of Semara has created a platform for future revenue growth and margin improvements in our enlarged textile rental business. We continue to work towards achieving the maximum benefits from the significant opportunities we have created over the last few years.' Enquiries: Richard Zerny, Chief Executive Mike Sutton, Finance Director Johnson Service Group PLC Tel: 0151 933 6161 Michael Sandler / Wendy Baker Hudson Sandler Tel: 020 7796 4133
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