Johnson Service Group PLC
19 March 2008
19 March 2008
Johnson Service Group PLC
(the 'Group')
Sale of assets
Johnson Service Group PLC, the textile related services and facilities
management Group, announces that it has today sold certain assets to Alsico
Laucuba Limited ('Alsico'), a subsidiary of Alsico NV, a Belgian manufacturer of
uniforms to textile rental companies across Europe. The assets include stock;
certain supply contracts previously owned by the Group's CCM garment sourcing
business and associated goodwill. Certain overheads will also be transferred to
Alsico, including leases over fixed assets and CCM's warehouse at Fulwood,
Preston. The initial consideration will be approximately £2.6 million in cash,
with further cash payments in quarterly instalments over a three year period up
to a maximum of approximately £200,000, dependent on the level of sales
achieved.
The decision to sell the assets was taken following a review of the long term
business opportunities available to CCM and in the light of a major contract
loss mentioned in our January trading update. This review determined that it
would be difficult for CCM to grow its business by winning new clients in the UK
textile rental sector, many of whom compete directly with Johnsons
Apparelmaster, the Group's market leading workwear rental business. The
transaction will deliver cash proceeds to the Group, while securing long-term
supply arrangements for the Johnsons Apparelmaster business.
The operating profit attributable to the assets sold was approximately £2.3
million in the year to 31 December 2006 of which some £1.1 million related to
profit on the internal supply of garments to Johnsons Apparelmaster. The gross
value of the assets was recorded as £2.7 million at 31 December 2006. The
proceeds of the sale will be used for general corporate purposes.
The sale will result in a write-down of goodwill of approximately £11.8 million
in the financial year to 31 December 2007.
Enquiries:
Hudson Sandler
Michael Sandler, Sandrine Gallien, Fran Read
Telephone: 020 7796 4133
For more information on Johnson Service Group PLC: www.johnsonplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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