29th May 2020 11:02
(Alliance News) - Johnson Service Group PLC said Friday it plans to raise around GBP85 million through a share placing, which will go towards improving the company's liquidity position and further strengthen its balance sheet.
The textile services provider will issue 73.9 million shares at 115 pence each through an accelerated bookbuilding process, for which Investec Bank is acting as a sole broker and bookrunner.
The placing price reflects a discount of 20% to the company's closing price of 143.00p on Thursday. Shares in Johnson Services Group were 9.3% lower at 129.71p on Friday in London.
Johnson Service said that trading for the first two months of 2020 before the impact of Covid-19 was in line with expectations. The Workwear business has remained open to continue supplying key industries, however organic revenue decline in March and April.
Within HORECA, which serves the Hotel, Restaurant & Catering markets, Johnson Service Group has ceased operations at most of its 18 sites. For the first two months of 2020, revenue was up, but declined in March and April. However, revenue for May is expected to be slightly ahead of April, as some customers reopen.
Proceeds from the placing will help the group to deal with several challenges, including a longer lockdown period, lower revenue, and a short-term working capital impact, Johnson Service said.
By Dayo Laniyan; [email protected]
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