Trading Statement

Johnson Service Group PLC 10 July 2007 10th July 2007 Johnson Service Group PLC Pre Close Trading Statement for the Half Year to 30 June 2007 Johnson Service Group PLC ('Johnson'), the textile related services and facilities management Group announces the following prior to entering its close period: Overall, trading in the period has been disappointing with various factors contributing to a weak second quarter. These factors include deferral of certain major contracts in our Corporatewear business and a quiet April and May in Johnson's Cleaners. Trading in our core Business-to-Business service activities has been generally satisfactory: - Johnsons Apparelmaster has traded well and is continuing to benefit from the reduced number of participants within the market. - Although the underlying trading of the Corporatewear division was satisfactory there were some deferrals of major contracts into the second half of the year referred to above which meant that trading profit was below budget. - The Facilities Management division has traded to expectations. Stalbridge, our linen rental business, continued to make significant losses in the period. Progress has been made to reduce overhead costs and it is a top priority of management that the seasonally stronger second half sees a return to profitability and cash generation. Our consumer-facing business, Johnson's Cleaners was affected by weaker trading conditions on the high street during the second quarter after a good performance in the first quarter. It has become increasingly clear that the environmental issues relating to the Drycleaning industry will, in time, greatly strengthen Johnson's Cleaners' dominant position in this market. The Group's net debt remains in line with levels previously indicated and we are looking at ways to reduce the borrowings to more appropriate levels. Charles Skinner, who was appointed as Chief Executive in April, said: 'We expect the second half of the year to remain challenging and there will be some restructuring required over the coming months. The benefits of these actions should be seen from 2008 onwards. The quality, market position and potential of our main businesses gives us confidence for the medium term performance of the Group.' www.johnsonplc.com For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler/Sandrine Charles Skinner, Chief Executive - 07966 234075 Gallien Telephone: 020 7796 4133 Jim Wilkinson, Finance Director - 07717 872778 This information is provided by RNS The company news service from the London Stock Exchange
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