Johnson Service Group PLC
13 January 2006
13 January 2006
Johnson Service Group PLC
Pre-Close Trading Statement for the Year End 31 December 2005
Johnson Service Group PLC, the textile related services and facilities
management Group announces the following trading update prior to entering its
close period.
Overall the Group has continued to trade satisfactorily during the second half
of the year and, therefore, the Board expects to announce full year results in
line with market expectations.
The business to business divisions of the Group have performed strongly,
particularly Corporatewear and Facilities Management. All the acquisitions made
during the year, are being successfully integrated into the Group and are
performing to plan.
The remaining quarter of the Group's revenue comes from the retail sector where
trading conditions remained challenging. Although no improvement in revenue was
seen compared to the first half of the year, costs were successfully managed
without compromising quality, enabling profitability to improve during the
second half of the year.
Following the preliminary results of recent tri-annual valuation of the Johnson
Group Staff Pension Scheme (the Group's main defined benefit scheme) we expect
the deficit on this scheme, net of taxation, calculated under IAS 19 rules, to
have increased by some £11m from the position reported under FRS17 as at
December 2004. The increase in the deficit largely reflects a fall in corporate
bond yields and allowances made for longer life expectancy. The increased
deficit will result in increased notional interest charges and additional
pension costs, of approximately £1.5m per annum from 2006. The defined benefit
scheme was closed to new entrants in 2002.
The Group will prepare its consolidated financial statements to 31 December 2005
under UK GAAP, supplemented with pro forma IFRS financial information, rather
than under IFRS as previously indicated. This is to comply with the Companies
Act 1985 (as amended November 2004) and is a result of the current accounting
year commencing on 26 December 2004, i.e. prior to the IFRS adoption date of 1
January 2005. We do not anticipate that this will have any substantial impact
on our reported results.
The Group intends to announce its preliminary results on 13 March 2006.
For further information, please contact:
Johnson Service Group PLC Hudson Sandler
Stuart Graham, CEO Michael Sandler
Jim Wilkinson, CFO Sandrine Gallien
Telephone: 020 7290 0390 Telephone: 020 7796 4133
Website: johnsonplc.com
For more information on the Johnson Service Group plc please view website
www.johnsonplc.com
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