JSG Johnson Service Group Plc

RNS Number:8243M
Johnson Service Group PLC
30 January 2008





                                                               30th January 2008

                           Johnson Service Group PLC

                           January Trading Statement


Johnson Service Group PLC, the textile related services and facilities
management Group, announces the following January trading update.

Overall, the Group at operating level is trading satisfactorily against a
backdrop of market uncertainty.

Rental

Johnsons Apparelmaster, the market-leading workwear laundering and rental
business, is continuing to perform well.

Stalbridge Linen Services, which supplies linen to the premium hotel, catering
and corporate hospitality markets, commenced a strategic realignment of its
business at the beginning of 2007. Whilst the full restructuring programme has
yet to be completed, the business has successfully reduced its levels of loss in
the second half of 2007 compared to the first six months of 2007.  This business
will work more closely with Johnsons Apparelmaster as we continue to reduce
losses and improve operational performance.

Corporatewear

The main activity of the Corporatewear division is the management and supply of
corporate uniforms to major companies; this business continues to trade
successfully.

The Corporatewear division has also historically included an operation which
supplies workwear garments to the rental business of Johnsons Apparelmaster and
to third party customers.  One of the major external contracts was lost towards
the end of 2007 and the balance of this workwear operation is currently being
reorganised.  The impact of this change has already been factored into the
Board's existing expectations.

Drycleaning

Our retail drycleaning division, which is Britain's largest drycleaning
business, includes Johnson Cleaners and Jeeves of Belgravia.  The current
decline in retail spending and the smoking ban are having some impact on the
trading volumes. Management are seeking to address the impact of these factors
by tight cost control, promotional activity geared up to drive volume through an
emphasis on value and by developing a broader product offering. The drive on
repositioning the store portfolio to convenient locations continues and five new
supermarket locations will open in the coming quarter.  Johnson Service Group
owns the exclusive UK rights to GreenEarth(R), the silicone-based cleaning
process, which has significant process and environmental advantages over the
traditional drycleaning methods.  The roll out of this new technology is
continuing.

Facilities Management

Johnson Facilities Management (JFM) completed 2007 with a strong second half
trading performance with additional fee income from the previously anticipated
loss of a major contract that is now being undertaken in-house by the customer.

During 2007 JFM concentrated on reorganising and integrating the two main
business streams which provide property management services to the financial,
retail and leisure sectors and the commercial office and public sector market.

For 2008, the Service charge and Agency businesses have been considerably
strengthened with leading industry expertise brought into JFM, and early
indications are of a growth year in this business activity.

As regards the Retail helpdesk, there are ongoing discussions with a number of
blue chip prospective customers, and, at this stage of the year, the pipeline is
looking strong.

JFM is pursuing a number of new business opportunities, and has already taken on
and mobilised two small contracts this year.

Group

On 28th December 2007, we announced that we had successfully agreed with our
banking group a waiver of our year end covenant test. The Company is required to
negotiate with the Banks a longer term banking solution before 30th April 2008.

Net debt at 31st December was approximately �170 million.

John Talbot was appointed interim Chief Executive Officer on 28th December 2007.
He has over 25 years turnaround and restructuring experience. The Board is
confident that this experience will prove invaluable in the development and
implementation of the recovery plan.


Simon Sherrard, Chairman of Johnson Service Group, commented:

"2007 has been a very difficult year for the Group. However, all our operating
businesses are strongly positioned in the markets they operate in. They
continued to trade satisfactorily in difficult conditions.

Our immediate priority is to secure financial stability for the group in order
that the operating companies can maximise their full potential. In John Talbot,
we have someone with the experience and knowledge to lead us through the
challenges of the next few months.

The Group will be announcing its preliminary results for the full year to 31st
December 2007 at the end of April."


Enquiries:

Johnson Service Group
John Talbot
Telephone: 020 7796 4133 on 30th January 2008 only

Hudson Sandler
Michael Sandler, Sandrine Gallien, Fran Read
Telephone: 020 7796 4133

For more information on the Johnson Service Group PLC: www.johnsonplc.com








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