19th Mar 2008 18:34
Johnson Service Group PLC19 March 2008 19 March 2008 Johnson Service Group PLC (the "Group") Sale of assets Johnson Service Group PLC, the textile related services and facilitiesmanagement Group, announces that it has today sold certain assets to AlsicoLaucuba Limited ("Alsico"), a subsidiary of Alsico NV, a Belgian manufacturer ofuniforms to textile rental companies across Europe. The assets include stock;certain supply contracts previously owned by the Group's CCM garment sourcingbusiness and associated goodwill. Certain overheads will also be transferred toAlsico, 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 upto a maximum of approximately £200,000, dependent on the level of salesachieved. The decision to sell the assets was taken following a review of the long termbusiness opportunities available to CCM and in the light of a major contractloss mentioned in our January trading update. This review determined that itwould be difficult for CCM to grow its business by winning new clients in the UKtextile rental sector, many of whom compete directly with JohnsonsApparelmaster, the Group's market leading workwear rental business. Thetransaction will deliver cash proceeds to the Group, while securing long-termsupply arrangements for the Johnsons Apparelmaster business. The operating profit attributable to the assets sold was approximately £2.3million in the year to 31 December 2006 of which some £1.1 million related toprofit on the internal supply of garments to Johnsons Apparelmaster. The grossvalue of the assets was recorded as £2.7 million at 31 December 2006. Theproceeds of the sale will be used for general corporate purposes. The sale will result in a write-down of goodwill of approximately £11.8 millionin the financial year to 31 December 2007. Enquiries: Hudson SandlerMichael Sandler, Sandrine Gallien, Fran ReadTelephone: 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 ExchangeRelated Shares:
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