30th Jun 2006 07:02
Johnson Service Group PLC30 June 2006 30 June 2006 Johnson Service Group PLC Pre-Close Trading Statement for the Half Year to 30 June 2006 and Sale and Leaseback of Properties to raise £26.5m Johnson Service Group PLC ("Johnson"), the textile related services andfacilities management Group announces the following prior to entering its closeperiod: Trading update Overall the Group has traded satisfactorily during the first half of the year. Our Corporatewear and Facilities Management divisions are performing in linewith expectations with encouraging new business wins in both areas. In addition,our Rental division continues to trade solidly and following the withdrawal ofone of our major competitors from the market, has been winning new customers. Trading conditions for our Drycleaning division continue to be unpredictable. Acost reduction programme is underway at all levels of the business, which willresult in margins improving in the second half of the year. With respect to theapproach for our Drycleaning business, discussions are continuing and may, ormay not, lead to an offer being received. As a result of the timing of new contracts and projects in our FacilitiesManagement and Corporatewear divisions, the profitability of the Group isexpected to be significantly biased towards the second half. The Board remains confident in the prospects for the Group as a whole andcontinues to believe that we are well placed to deliver another satisfactoryoutcome for the year. Sale and leaseback of properties Johnson Group Properties PLC, a wholly owned subsidiary of Johnson, has disposedof, on a sale and leaseback basis, 79 retail trading properties currentlyoccupied by the Drycleaning division for a sum of £26.5m in cash on completionto Oceandale Investments Ltd and Oceandale Securities Ltd. The gross and netbook value of the properties is £13.2m and £12.3m respectively. The operatingleases, which have been signed in the name of Johnson Cleaners UK Ltd, are for15 years with a break clause after 10 years and rent reviews after 5 years,linked to RPI. The transaction is expected to be earnings dilutive in a fullyear. Proceeds from the sale will be used to reduce bank borrowings. For further information, please contact: Hudson Sandler Johnson Service Group PLC Michael Sandler / Sandrine Gallien Stuart Graham, CEOTelephone: 020 7796 4133 Jim Wilkinson, CFO Telephone 020 7290 0380 For more information on the Johnson Service Group plc please view websitewww.johnsonplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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