10th Jul 2007 07:00
Johnson Service Group PLC10 July 2007 10th July 2007 Johnson Service Group PLC Pre Close Trading Statement for the Half Year to 30 June 2007 Johnson Service Group PLC ("Johnson"), the textile related services andfacilities management Group announces the following prior to entering its closeperiod: Overall, trading in the period has been disappointing with various factorscontributing to a weak second quarter. These factors include deferral ofcertain major contracts in our Corporatewear business and a quiet April and Mayin Johnson's Cleaners. Trading in our core Business-to-Business service activities has been generallysatisfactory: - Johnsons Apparelmaster has traded well and is continuing to benefitfrom the reduced number of participants within the market. - Although the underlying trading of the Corporatewear division wassatisfactory there were some deferrals of major contracts into the second halfof the year referred to above which meant that trading profit was below budget. - The Facilities Management division has traded to expectations. Stalbridge, our linen rental business, continued to make significant losses inthe period. Progress has been made to reduce overhead costs and it is a toppriority of management that the seasonally stronger second half sees a return toprofitability and cash generation. Our consumer-facing business, Johnson's Cleaners was affected by weaker tradingconditions on the high street during the second quarter after a good performancein the first quarter. It has become increasingly clear that the environmentalissues relating to the Drycleaning industry will, in time, greatly strengthenJohnson's Cleaners' dominant position in this market. The Group's net debt remains in line with levels previously indicated and we arelooking at ways to reduce the borrowings to more appropriate levels. Charles Skinner, who was appointed as Chief Executive in April, said: "We expectthe second half of the year to remain challenging and there will be somerestructuring required over the coming months. The benefits of these actionsshould be seen from 2008 onwards. The quality, market position and potential of our main businesses gives usconfidence for the medium term performance of the Group." www.johnsonplc.com For further information, please contact: Hudson Sandler Johnson Service Group PLCMichael Sandler/Sandrine Charles Skinner, Chief Executive - 07966 234075GallienTelephone: 020 7796 4133 Jim Wilkinson, Finance Director - 07717 872778 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Johnson Service