Johnson Service Group PLC
30 June 2006
30 June 2006
Johnson Service Group PLC
Pre-Close Trading Statement for the Half Year to 30 June 2006 and
Sale and Leaseback of Properties to raise £26.5m
Johnson Service Group PLC ('Johnson'), the textile related services and
facilities management Group announces the following prior to entering its close
period:
Trading update
Overall the Group has traded satisfactorily during the first half of the year.
Our Corporatewear and Facilities Management divisions are performing in line
with expectations with encouraging new business wins in both areas. In addition,
our Rental division continues to trade solidly and following the withdrawal of
one of our major competitors from the market, has been winning new customers.
Trading conditions for our Drycleaning division continue to be unpredictable. A
cost reduction programme is underway at all levels of the business, which will
result in margins improving in the second half of the year. With respect to the
approach for our Drycleaning business, discussions are continuing and may, or
may not, lead to an offer being received.
As a result of the timing of new contracts and projects in our Facilities
Management and Corporatewear divisions, the profitability of the Group is
expected to be significantly biased towards the second half.
The Board remains confident in the prospects for the Group as a whole and
continues to believe that we are well placed to deliver another satisfactory
outcome for the year.
Sale and leaseback of properties
Johnson Group Properties PLC, a wholly owned subsidiary of Johnson, has disposed
of, on a sale and leaseback basis, 79 retail trading properties currently
occupied by the Drycleaning division for a sum of £26.5m in cash on completion
to Oceandale Investments Ltd and Oceandale Securities Ltd. The gross and net
book value of the properties is £13.2m and £12.3m respectively. The operating
leases, which have been signed in the name of Johnson Cleaners UK Ltd, are for
15 years with a break clause after 10 years and rent reviews after 5 years,
linked to RPI. The transaction is expected to be earnings dilutive in a full
year. Proceeds from the sale will be used to reduce bank borrowings.
For further information, please contact:
Hudson Sandler Johnson Service Group PLC
Michael Sandler / Sandrine Gallien Stuart Graham, CEO
Telephone: 020 7796 4133 Jim Wilkinson, CFO
Telephone 020 7290 0380
For more information on the Johnson Service Group plc please view website
www.johnsonplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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