JSG Johnson Service Group Plc

RNS Number:3014H
Johnson Service Group PLC
08 November 2007



                                                                 8 November 2007


                           Johnson Service Group PLC


As has previously been announced, the Group is in the process of a restructuring
programme which includes the proposed sale of three non-core businesses.
However, the current trading position of these businesses has not been conducive
to the execution of a successful sales process and the Board has no intention of
selling any of these businesses at a value which the Board would not consider to
be in the Group's interest.

Consequently the Board now considers that there are limited prospects of
receiving any sales proceeds in respect of these businesses during 2007.  This
combined with the lower than expected Group profits for 2007 and 2008, the
subject of the announcement on 31 October 2007, means that it is the Board's
expectation that the Company will breach the existing covenants in its banking
agreement.

The Board has informed its banks and is working constructively with them to
reach an agreement. Close Brothers has been appointed by the Board to advise it
in achieving this objective.

The Group also announces that the budget process for 2008 suggests that profits
for 2008 will be at a broadly similar level to those for 2007 which are in line
with market expectations. The flat year on year performance reflects lower
expectations in our Corporatewear division offset by improving performance at
Stalbridge Linen Services.





Enquiries

Johnson Service Group PLC
Charles Skinner, Chief Executive                       07966 234075
                                                       020 7290 0382
Hudson Sandler
Michael Sandler                                        020 7796 4133
Nick Lyon
Fran Read




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