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
*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.