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
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.