8th Nov 2007 14:33
Johnson Service Group PLC08 November 2007 8 November 2007 Johnson Service Group PLC As has previously been announced, the Group is in the process of a restructuringprogramme which includes the proposed sale of three non-core businesses.However, the current trading position of these businesses has not been conduciveto the execution of a successful sales process and the Board has no intention ofselling any of these businesses at a value which the Board would not consider tobe in the Group's interest. Consequently the Board now considers that there are limited prospects ofreceiving any sales proceeds in respect of these businesses during 2007. Thiscombined with the lower than expected Group profits for 2007 and 2008, thesubject of the announcement on 31 October 2007, means that it is the Board'sexpectation that the Company will breach the existing covenants in its bankingagreement. The Board has informed its banks and is working constructively with them toreach an agreement. Close Brothers has been appointed by the Board to advise itin achieving this objective. The Group also announces that the budget process for 2008 suggests that profitsfor 2008 will be at a broadly similar level to those for 2007 which are in linewith market expectations. The flat year on year performance reflects lowerexpectations in our Corporatewear division offset by improving performance atStalbridge Linen Services. Enquiries Johnson Service Group PLCCharles Skinner, Chief Executive 07966 234075 020 7290 0382Hudson SandlerMichael Sandler 020 7796 4133Nick LyonFran Read This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Johnson Service