RNS Number : 9936C
Johnson Service Group PLC
09 September 2008
9 September 2008
Johnson Service Group PLC
Interim results for the half year to 30 June 2008
Johnson Service Group PLC, the textile services and facilities management Group announces its interim results for the half year to 30
June 2008.
Summary
* Significant progress since John Talbot's appointment in December 2007
* Proforma net debt of �78.5 million at September 2008, reduced from �168.5 million at December 2007
* Adjusted operating profit increased to �7.7 million (June 2007: �7.5 million)
* Three main divisional heads appointed to the Board
* Three market leading profitable divisions all well placed for the future
Financial Summary (Continuing)
June 2008 June 2007
Revenue �130.1m �158.9m
Revenue (excluding costs recharged to customers) �124.9m �136.3m
Operating Profit / (Loss) �0.5m �(11.8)m
Adjusted Operating Profit* �7.7m �7.5m
Exceptional Costs �(5.6)m �(17.7)m
(Loss) Before Tax �(7.5)m �(17.0)m
Adjusted Profit Before Tax* �0.4m �2.3m
* Before intangibles amortisation and impairment (excluding software amortisation) and exceptional items.
John Talbot, Executive Chairman of Johnson Service Group, commented:
I believe that the Group is now well placed with strong, incentivised management, market leading, profitable divisions and significantly
reduced debt.
We are now well positioned to seize commercial opportunities but unfortunately we are not immune to weaknesses in the UK economy, which
continues to be difficult.
The Textile Rental division has, to date, continued to attract new business, although latterly at a slower rate. There is considerable
uncertainty about the future price of energy and fuel but we shall take steps to mitigate the impact wherever possible.
SGP, in the Facilities Management division, has a strong new business pipeline of enquiries, particularly for its proprietary help desk
services, for which demand seems to be increasing as the retail environment gets tougher but in this climate, project income will continue
to be under pressure, at least in the short term.
Drycleaning is being affected by the difficult conditions on the high street but we continue to believe that the second half should
follow the usual pattern and be stronger than the first.
Overall, despite the economic climate, the Board expects the result for the current financial year to be satisfactory.
For further information, please contact:
Johnson Service Group PLC Hudson Sandler
John Talbot, Executive Chairman Michael Sandler
Yvonne Monaghan, Finance Director Wendy Baker
Tel: 020 7796 4133 (on the day) Fran Read
Tel: 01928 704600 (thereafter) Telephone: 020 7796 4133
www.johnsonplc.com
Chairman's Statement
I have, as of yesterday, taken up the position of Executive Chairman of the Group, having originally joined the Group as Chief Executive
in December 2007, and I am delighted to report on the significant progress made so far in 2008 including the completion of the disposal of
the Corporatewear division, the raising of new equity and the signing of new medium term bank facilities.
The three continuing divisions are market leading businesses in the areas in which they operate and are each led by strong and motivated
management teams.
Group Results
Total continuing revenue in the six months to 30 June 2008 decreased by 18.1% to �130.1 million (2007: �158.9 million), while continuing
underlying revenue, excluding costs recharged to customers, reduced by 8.4% to �124.9 million (2007: �136.3 million). The reduction in
revenue is largely attributable to the planned withdrawal from the low margin linen rental activities within the Stalbridge business and the
previously anticipated and reported loss of a major contract in the Facilities Management division. Continuing adjusted operating profit,
was 2.7% higher at �7.7 million (2007: �7.5 million).
Adjusted operating profit throughout this statement refers to operating profit before amortisation and impairment of intangibles
(excluding software amortisation) and exceptional items. Adjusted profit before tax refers to adjusted operating profit less finance costs,
excluding exceptional finance costs in relation to bank facility fees.
Net exceptional costs from continuing operations for the half year amounting to �5.6 million (2007: �17.7 million) comprised a profit on
the disposal of properties of �0.8 million (2007: �2.6 million), a release of excess provision for an uninsured loss of �1.0 million,
restructuring and other costs of �1.4 million (2007: �20.3 million) and �6.0 million of professional and advisory costs incurred in
connection with the bank restructuring process.
Net finance costs were �8.0 million (2007: �5.2 million) of which �0.7 million related to exceptional finance costs arising from the
write off of bank fees on the part of the new bank facility which was repaid during the period. The increased charge reflected higher
average borrowings and interest rates during the period.
Adjusted pre-tax profit on a continuing basis was �0.4 million (2007: �2.3 million).
After the exceptional costs and amortisation of intangibles (excluding software) of �7.9 million (2007: �19.3 million) the continuing
pre-tax loss was �7.5 million (2007: �17.0 million). Adjusted fully diluted earnings per share from continuing operations were 0.4p (2007:
2.5p) while continuing earnings including exceptional items and amortisation of software were a loss of 8.8p (2007: loss 19.9p).
Finances
Total debt at the end of the first half was significantly reduced to �118.1 million (December 2007; �168.5 million) following the net
receipt of �67.1 million from the sale of the Corporatewear and garment sourcing businesses. Subsequent to the period to 30 June 2008, debt
has fallen further due to the net receipt of �27.8 million from the Placing of shares, an additional �4.6 million post completion adjustment
from the sale of Corporatewear and �7.2 million from the net proceeds of the Open Offer. Taking 30 June net debt and applying the above
receipts, the proforma net debt would reduce to �78.5 million.
As at 9 September 2008, the funds raised by the Placing and Open Offer have reduced bank debt so that only �20.0 million of debt will be
drawn under the most expensive part of the facility incurring an interest cost of 4% over LIBOR. The remaining bank debt incurs interest at
2.5% over LIBOR.
Disposal of Corporatewear
The disposal of Corporatewear was completed on 28 April 2008 for a total net consideration, on a debt free, cash free basis, of �84.4
million. The pre-tax gain on the disposal of �11.9 million, less the potential tax arising on the disposal in the sum of �13.2 million,
together with the profit after tax arising from the business in the four months prior to disposal, has been shown as a loss on discontinued
operations.
As disclosed in the Circular to Shareholders relating to the disposal, it remains unclear whether this potential de-grouping tax charge
will crystallise but in view of the uncertainty, a provision of �13.2 million has been made and that amount placed in escrow, pending
resolution. The net proceeds from the disposal were principally used to repay debt.
Issue of Equity
As mentioned above, following the period end the Company has issued 189,828,824 Ordinary shares (150,000,000 pursuant to the Placing and
39,828,824 pursuant to the Open Offer) to raise a net amount of approximately �35.0 million after expenses. This has primarily been utilised
in reducing the Group's most expensive bank debt. As explained in both the Placing Circular and the Prospectus, the share issue has
increased net assets by the same amount.
Dividend
As previously advised, the Board is not intending to recommend a dividend payment in respect of the 2008 financial year. Subject, inter
alia, to having sufficient distributable reserves, it is currently envisaged that the Company will commence the payment of interim and final
dividends for the year ending 31 December 2009.
Principal Risks and Uncertainties
The Principal Risks and Uncertainties facing the Group were detailed on pages 12 and 13 of the 2007 Annual Report under the headings
Financial, Operating and Other and also on pages 10 to 16 of the Company's Prospectus to Shareholders published on 6 August 2008. These
remain unchanged.
DIVISIONAL PERFORMANCE
Textile Rental
Revenue of the division, which comprises Johnsons Apparelmaster and Stalbridge Linen Services, reduced by 5.6% to �60.8 million (2007:
�64.4 million) as a result of the previously announced strategy of disposing of high volume, low value hotel linen contracts. As a result of
the disposal of Corporatewear the intra-Group trading results have been reclassified from the Corporatewear segment to Textile Rental for
2007. After this adjustment, adjusted operating profit increased by 27.4% to �6.5 million (2007: �5.1 million).
Johnsons Apparelmaster, the market-leading workwear laundering and rental business, achieved revenue growth of 1.9% from �46.3 million
to �47.2 million despite challenging market conditions. Adjusted operating profit has increased by 13.1% from �6.1 million to �6.9 million
largely reflecting a reduction in administrative overheads and having adjusted for the intra-Group trading referred to above.
New contract installations grew by 3% as Apparelmaster continues to develop its customer relationship programmes and despite the early
signs of the general economic pressures within the UK economy, customer retention remained consistent with the previous year.
The conversion of the former Stalbridge linen processing plant in the Midlands to a high specification workwear plant is proceeding to
plan and it will be in production before the end of this year. This plant replaces the old Midlands plant which will close when production
has been transferred and it will provide some 25% additional production capacity with only a marginal increase in overhead.
Our commitment to the continuing improvement in quality is demonstrated by being the first UK textile rental company to register and
comply with BS EN 140654, a dedicated European Standard for Risk Analysis and Bio-contamination Control, which specifically relates to
standards for the processing of food industry clothing. Our commitment to continued improvements in customer service is also strengthened by
our registration with the Government's skills pledge initiative and in awarding NVQs to our core employees.
Stalbridge Linen Services, which supplies linen to the premium hotel, catering and corporate hospitality markets, has continued to make
progress towards returning to profitability. Although revenue reduced by 24.9% from �18.1 million to �13.6 million as part of the planned
reduction of low price linen processing, the adjusted operating loss for the half year improved by 50% from a loss of �1.6 million in 2007
to �0.8 million in 2008 despite experiencing higher energy and fuel costs.
This business is seasonal, historically enjoying better trading in the second half of the year. The cessation of processing in the
Midlands plant referred to above was completed in February, thereby reducing the ongoing cost base. Improved production efficiencies have
been implemented and further savings will be achieved as the back office of the business is further combined with Johnsons Apparelmaster.
Facilities Management
The Facilities Management division comprises SGP Property & Facilities Management (SGP) and Workplace Engineering. Revenue for the
division was 51.6% lower at �23.2 million (2007: �47.9 million) whilst revenue excluding costs recharged to customers was 28.9% lower at
�18.0 million (2007: �25.3 million). Adjusted operating profit reduced by 32% to �1.7 million (2007: �2.5 million).
SGP, formerly Johnson Facilities Management, which provides property management services to the retail, financial and commercial office
markets, has produced an adjusted operating profit result in line with expectations. As reported in the full year results for 2007, a major
customer took its property management in house with effect from the beginning of 2008 and the reduction in revenue, both including and
excluding costs recharged to customers, and adjusted operating profit largely results from this.
Revenue excluding costs recharged to customers reduced from �18.6 million to �14.3 million while total revenue, including recharges,
decreased to �19.5 million (2007: �41.2 million). Adjusted operating profit reduced by 22.7% to �1.7 million (2007: �2.2 million).
Encouragingly, however, the operating profit would have shown an increase of 42% if the contract referred to had been excluded from the
comparative figures.
The business has now been re-branded under the SGP banner, encompassing four main revenue streams, and is continuing to win significant
new customers, particularly in the retail sector where it serves over 22% of the total number of the large high street retailers with chains
of 100 outlets or more. During August we have signed a contract with major restaurant chain with some 300 locations to provide help desk
services and the benefit of this, and other contracts which are nearing signature, will begin to come through in 2009. Our more conventional
FM contracts are performing well with additional add on services being provided and six new contracts have been signed this year.
The projects area of the business is experiencing challenging conditions as many of our customers in the retail sector have delayed or
cancelled capital projects that are managed by our staff. Revenue from projects is down 66% in the first half and this is likely to continue
until the retail sector has confidence to resume investing in its estate.
Workplace Engineering, which provides electrical engineering and fit- out services reported revenue of �3.7 million (2007: �6.7
million), breaking even at the adjusted operating profit level compared to �0.4 million in 2007. The business has been affected by the loss
of the major contract referred to above which was the major contributor to revenue and profit in the first half of 2007. A number of new
contracts have been signed during the period but these will largely benefit the second half.
Drycleaning
The Drycleaning division comprises Johnson Cleaners, Jeeves of Belgravia and Alex Reid. Revenue for the division was slightly lower at
�46.1 million (2007: �46.6 million) and adjusted operating profit reduced by 28% to �1.8 million (2007: �2.5 million).
Johnson Cleaners and Jeeves of Belgravia
Johnson Cleaners revenue decreased by 3.1% on a like for like basis and Jeeves of Belgravia revenue increased by 10.0% on a like for
like basis. Combined revenue was �39.5 million (2007: �40.9 million) with adjusted operating profit decreasing by 29.6% to �1.9 million
(2007: �2.7 million). The number of stores fell from 537 stores at the end of December 2007 to 528 stores at the end of June following a
targeted reduction of under performing stores. Four new supermarket locations were opened as part of the ongoing strategy of re-locating to
more convenient locations and are trading to expectation. A further six new supermarkets and drive-in locations are planned for the second
half.
Additional services continue to be added to existing stores including ironing in all stores, laundry under the banner "Washed4U" in 215
stores and an Executive Service in 50 stores by the end of June. The JFRS business, which offers post flood and fire fabric restoration
services, is achieving encouraging results and is to open an additional processing facility in Glasgow in the second half.
The smoking ban has now been effective for over 12 months and, as previously commented, this has impacted drycleaning volumes. However
as the second half of 2008 will be comparing to volumes in 2007 after the ban, like for like sales are expected to be more favourable. The
trading conditions on the high street remain difficult and some cost pressures on energy, fuel and oil related consumables are anticipated
in the second half although initiatives on additional services and carbon emissions will offset some of this impact. Some 243 stores have
now been converted to GreenEarth� processing, the more environmentally friendly drycleaning process.
Jeeves of Belgravia is continuing to build on its central London presence through expansion of its home delivery service.
Alex Reid
Alex Reid, our specialist drycleaning and supplies business, has continued to experience strong competition, in a difficult market.
Revenue increased by 15.8% to �6.6 million (2007: �5.7 million), breaking even at the adjusted operating profit level compared to a loss
of �0.1 million in 2007. Potential synergies with regard to distribution costs and plant utilisation are being reviewed with all Group
companies in order to improve trading performance.
Pension Deficit
Net deficit after tax for all post retirement benefit obligations increased from �11.0 million at December 2007 to �14.7 million at June
2008, despite additional cash contributions of �3.9 million during the period (including the �2.1 million payment from the Corporatewear
disposal). This increase is as a result of an adverse movement in market assumptions and a significant fall in the value of equity
investments, due to current market conditions. This deficit will continue to be impacted by movements in assumptions and actual discount
rates, both of which are outside the control of the Group. Actuarial valuations of all three defined benefit schemes have now been completed
and the additional cash contributions to be paid into the Schemes in the second half of 2008 has been agreed as �0.9 million with less than
�2.0 million to be paid in 2009. I will be assuming the Chairmanship of the main scheme's pension committee and I intend to work closely
with the Trustees of all of our schemes to ensure that the Group's interests are protected. Amongst other issues we shall be exploring cost efficient ways of reducing the level of past service
liabilities in the Schemes whilst, at the same time, protecting members' interests.
Board
I am pleased to announce that the Managing Director of each of the three main divisions, Christopher Sander, Kevin Elliott and Paul
Ogle, have today been appointed to the Board. As previously announced Simon Sherrard stepped down as Chairman and left the Board on 8
September 2008 and I would like to thank him for his contribution to the Group over the past eight and a half years.
People
I would like to thank employees at all levels throughout the Group for the dedication and considerable efforts over the last nine months
during what has been a difficult time.
Outlook
I believe that the Group is now well placed with strong, incentivised management, market leading, profitable divisions and significantly
reduced debt.
We are now well positioned to seize commercial opportunities but unfortunately we are not immune to weaknesses in the UK economy, which
continues to be difficult.
The Textile Rental division has, to date, continued to attract new business, although latterly at a slower rate. There is considerable
uncertainty about the future price of energy and fuel but we shall take steps to mitigate the impact wherever possible.
SGP has a strong new business pipeline of enquiries, particularly for its proprietary help desk services, for which demand seems to be
increasing as the retail environment gets tougher but in this climate, project income and property agency will continue to be under
pressure, at least in the short term.
Drycleaning is being affected by the difficult conditions on the high street but we continue to believe that the second half should
follow the usual pattern and be stronger than the first.
Overall, despite the economic climate, the Board expects the result for the current financial year to be satisfactory.
John Talbot
Executive Chairman
Responsibility Statement
The consolidated interim financial statements comply with the Disclosure and Transparency Rules ('DTR') of the United Kingdom's
Financial Services Authority in respect of the requirement to produce a half-yearly financial report. The interim report is the
responsibility of, and has been approved by, the Directors.
The Directors confirm that to the best of their knowledge:
* this financial information has been prepared in accordance with IAS 34 as adopted by the European Union;
* this interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events
during the first half and description of principal risks and uncertainties for the remaining half of the year); and
* this interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
The Directors of Johnson Service Group are listed in the Johnson Service Group Annual Report for 2007, with the following changes since
31st December 2007:
* Simon Sherrard stepped down as Non-Executive Chairman on 8th September 2008;
* John Talbot (previously Interim Chief Executive Officer) was appointed as Executive Chairman on 8th September 2008; and
* Christopher Sander, Kevin Elliott and Paul Ogle, the Managing Director of each of the three main divisions, were appointed to the
Board on 9th September 2008.
A list of current Directors is available on the Johnson Service Group website: www.johnsonplc.com
By order of the Board
Y M Monaghan
Finance Director
9th September 2008
On behalf of the Board
Consolidated Income Statement
Half year to Half year to Year ended
30th June 30th June 2007 31st December
2008 2007
Note �m �m �m
CONTINUING
OPERATIONS:
2 REVENUE 130.1 158.9 316.8
Costs recharged to (5.2) (22.6) (41.1)
customers
Revenue excluding 124.9 136.3 275.7
costs recharged to
customers
2 OPERATING PROFIT / 0.5 (11.8) (33.1)
(LOSS)
OPERATING PROFIT 7.7 7.5 18.1
BEFORE INTANGIBLES
AMORTISATION AND
IMPAIRMENT
(EXCLUDING SOFTWARE
AMORTISATION) AND
EXCEPTIONAL ITEMS
Amortisation and (1.6) (1.6) (11.3)
impairment of
intangible assets
(excluding software
amortisation)
3 Exceptional items
- Restructuring and (6.4) (20.3) (42.0)
other costs
- Profit on disposal 0.8 2.6 2.1
of property
2 OPERATING PROFIT / 0.5 (11.8) (33.1)
(LOSS)
Finance costs - (7.4) (5.9) (12.7)
Ordinary finance
costs
- Exceptional (0.7) - (2.7)
finance costs
Finance income 0.1 0.7 1.1
LOSS BEFORE TAXATION (7.5) (17.0) (47.4)
5 Taxation 2.3 5.2 9.0
LOSS FOR THE PERIOD (5.2) (11.8) (38.4)
FROM CONTINUING
OPERATIONS
DISCONTINUED
OPERATIONS:
10 (LOSS) / PROFIT FOR (0.9) 2.3 (6.5)
THE PERIOD FROM
DISCONTINUED
OPERATIONS
LOSS FOR THE PERIOD (6.1) (9.5) (44.9)
ATTRIBUTABLE TO
EQUITY HOLDERS
6 EARNINGS PER SHARE *
Basic earnings per
share
From continuing (8.8p) (19.9p) (64.7p)
operations
From discontinued (1.6p) 3.9p (11.1p)
operations
From continuing and (10.4p) (16.0p) (75.8p)
discontinued
operations
Diluted earnings per
share
From continuing (8.8p) (19.9p) (64.7p)
operations
From discontinued (1.6p) 3.9p (11.1p)
operations
From continuing and (10.4p) (16.0p) (75.8p)
discontinued
operations
* Earnings per share before intangibles amortisation and impairment (excluding
software amortisation) and exceptional items are shown in Note 6.
The notes on pages 12 to 21 form an integral part of these consolidated interim financial statements.
Consolidated Statement of Recognised Income and Expense
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
Note �m �m �m
Actuarial (loss) / gain on defined benefit (9.5) 16.1 10.4
pension plans
Taxation in respect of actuarial gain 2.7 (4.8) (3.1)
Net movement on reserves in respect of IAS (6.8) 11.3 7.3
19 actuarial gains and losses
Effects of changes in taxation rates - 0.3 -
Cash flow hedges - fair value gains / 0.6 0.9 (0.6)
(net of taxation) (losses)
- transfers to - - 0.3
inventory
- transfers to (0.1) (0.1) (0.2)
interest
NET (EXPENSE) / INCOME RECOGNISED DIRECTLY (6.3) 12.4 6.8
IN EQUITY
Loss for the period (6.1) (9.5) (44.9)
11 TOTAL RECOGNISED (EXPENSE) / INCOME FOR (12.4) 2.9 (38.1)
THE PERIOD
Consolidated Balance Sheet
As at As at As at
30th June 2008 30th 31st December
June 2007
2007
Note �m �m �m
ASSETS
NON-CURRENT ASSETS
Goodwill 89.2 138.9 117.7
Intangible assets 13.6 37.1 32.9
Property, plant and equipment 46.0 59.2 48.4
Textile rental items 22.0 25.1 23.1
Trade and other receivables 0.3 0.2 -
Derivative financial assets 0.2 1.7 -
Deferred income tax assets 15.7 9.7 13.8
187.0 271.9 235.9
CURRENT ASSETS
Inventories 4.3 30.5 30.5
Trade and other receivables 64.2 65.0 69.0
Derivative financial assets - 0.1 0.6
Cash and cash equivalents 5.6 9.4 16.3
74.1 105.0 116.4
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20.4 28.2 27.7
Other creditors and accruals 30.7 62.3 49.5
Current income tax liabilities 11.4 0.2 0.3
Borrowings 4.7 1.2 107.8
Derivative financial liabilities - 0.2 0.8
Provisions 5.0 7.1 7.1
72.2 99.2 193.2
NET CURRENT ASSETS / (LIABILITIES) 1.9 5.8 (76.8)
NON-CURRENT LIABILITIES
Borrowings 119.0 158.2 77.0
8 Retirement benefit obligations 21.0 12.7 15.8
Deferred income tax liabilities 2.9 8.6 7.9
Provisions 9.8 8.0 9.8
Derivative financial liabilities - 0.7 0.3
Other non-current liabilities 1.3 1.6 1.5
154.0 189.8 112.3
NET ASSETS 34.9 87.9 46.8
EQUITY
CAPITAL AND RESERVES ATTRIBUTABLE TO THE COMPANY'S EQUITY HOLDERS
11 Called up share capital 5.9 5.9 5.9
11 Share premium 13.7 13.7 13.7
11 Other reserves 2.7 3.2 1.9
11 Retained earnings 12.6 65.1 25.3
TOTAL EQUITY 34.9 87.9 46.8
The notes on pages 12 to 21 form an integral part of these consolidated interim financial statements. The consolidated interim
financial statements on pages 8 to 21 were approved by the Board of Directors on 9th September 2008 and signed on its behalf by:
Y M Monaghan
Finance Director
Consolidated Cash Flow Statement
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
Note �m �m �m
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period (6.1) (9.5) (44.9)
Adjustments for:
5 Income tax - continuing operations (2.3) (5.2) (9.0)
- discontinued operations 13.4 0.9 1.5
Finance income and expense 8.0 5.2 14.3
Depreciation 10.8 13.3 28.6
Amortisation of intangible assets and impairment of 2.8 3.7 28.7
goodwill
Impairment of intangible assets - 15.5 17.0
Write-off of textile rental items - 3.6 3.6
Increase in inventories (2.3) (0.9) (1.0)
Decrease in trade and other receivables 6.0 6.7 0.8
Decrease in trade and other payables (15.2) (9.8) (10.9)
(Profit) / loss on sale of property, plant and (0.8) (2.1) 6.2
equipment
Loss on disposal of intangible assets - - 0.7
Pre-tax gain on disposal of subsidiaries (11.9) - -
Additional contribution to defined benefit pension (1.8) (1.4) (3.5)
schemes
Other non-cash movements (2.0) (1.5) (0.4)
Cash (used in) / generated from operations (1.4) 18.5 31.7
Interest paid (9.0) (5.8) (15.0)
Taxation received - 0.3 0.5
Net cash (used in) / generated from operating activities (10.4) 13.0 17.2
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiaries (net of cash acquired) - (6.0) (7.1)
10 Proceeds from sale of subsidiaries 67.1 - -
Purchase of property, plant and equipment (4.6) (9.0) (12.5)
Proceeds from sale of property, plant and equipment 1.3 3.6 5.7
Purchase of intangible assets (0.5) (2.8) (6.3)
Purchase of textile rental items (5.3) (10.4) (19.4)
Proceeds from sale of textile rental items 2.2 1.9 3.6
Interest received 0.1 0.2 1.1
Net cash generated from / (used in) investing activities 60.3 (22.5) (34.9)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 197.0 27.0 63.0
Repayments of borrowings (257.0) (20.0) (31.0)
Capital element of finance leases (0.6) (0.5) (1.4)
Net proceeds from issue of Ordinary shares - 1.0 1.0
Net proceeds from sale of own shares in relation to - 0.1 -
employee share schemes
Dividends paid to company Shareholders - - (8.9)
Net cash (used in) / generated from financing activities (60.6) 7.6 22.7
Net (decrease) / increase in cash and cash equivalents (10.7) (1.9) 5.0
Cash and cash equivalents at beginning of period 16.3 11.3 11.3
12 Cash and cash equivalents at end of period 5.6 9.4 16.3
The notes on pages 12 to 21 form an integral part of these consolidated interim financial statements.
Notes to the Consolidated Interim Financial Statements
Johnson Service Group PLC ('the Company') and its subsidiaries (together 'the Group') provide a unique range of managed services,
operating in two principal areas: textile related services and facilities management.
The Company is incorporated and domiciled in the UK. The Company's registered number is 523335. The address of its registered office
is Johnson House, Abbots Park, Monks Way, Preston Brook, Cheshire, WA7 3GH.
The Company has its primary listing on the London Stock Exchange, with its shares traded on AIM.
The Group consolidated interim financial statements were approved for issue by the Board on 9th September 2008.
1 BASIS OF PREPARATION
These consolidated interim financial statements of Johnson Service Group PLC are for the six months ended 30th June 2008. They have
been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority, with IAS 34, 'Interim Financial
Reporting', with those International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee
(IFRIC) interpretations as adopted by the European Union at 30th June 2008 and with those parts of the Companies Acts applicable to
companies reporting under IFRS.
The consolidated interim financial statements have not been reviewed or audited, nor do they comprise statutory accounts for the purpose
of Section 240 of the Companies Act 1985 (Section 434 of the Companies Act 2006), and do not include all of the information or disclosures
required in the annual financial statements and should therefore be read in conjunction with the Group's 2007 consolidated financial
statements.
The consolidated interim financial statements have been prepared applying the accounting policies, presentation and methods of
computation applied by the Group in the preparation of the published consolidated financial statements for the year ended 31st December
2007. However, in accordance with the requirements of IFRS 5, 'Non-current Assets Held for Sale and Discontinued Operations', the
comparatives within these consolidated interim financial statements have been amended to reflect the classification of certain operations as
discontinued.
The following interpretations are mandatory for the first time for the financial year beginning 1st January 2008 but are not currently
relevant or have no material impact to the Group's operation:
* IFRIC 11, 'IFRS 2 - Group and treasury share transactions';
* IFRIC 12, 'Service concession arrangements'; and
* IFRIC 14, 'IAS 19 - the limit on a defined benefit asset, minimum funding requirements and their interaction'.
The preparation of the consolidated interim financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may
differ from these estimates.
Financial information for the year ended 31st December 2007 included herein is derived from the statutory accounts for that year, which
have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement
under Section 237 (2) or 237 (3) of the Companies Act 1985 (as amended).
Seasonality or cyclicality could affect the Drycleaning division and Stalbridge Linen Services, although the Directors do not consider
the effect of this seasonality or cyclicality to be significant in the context of the consolidated interim financial statements.
2 SEGMENT ANALYSIS
Segment information is presented in respect of the Group's business segments, which are based on the Group's management and internal
reporting structure as at 30th June 2008.
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis, for
example:
* Rental income received by the property company is allocated to segments based upon revenue during the year; and
* Costs of the internal audit function are allocated to segments based upon revenue during the year.
Unallocated central overheads are shown separately. Inter-segment pricing is determined on an arm's length basis. The exceptional
items have been included within the appropriate business segment as shown on pages 13 to 15.
The Textile Rental Services results for 2007 have been re-presented for the changed treatment of intra Group trading to reflect the
disposal of Corporatewear.
Geographical segments
Revenue originates wholly within the United Kingdom and as a result, no geographical segments are presented within these interim
financial statements. There is no significant difference between revenue by origin and revenue by destination.
Business segments
The continuing Group comprises the following main business segments and entities:
Textile rental services
Workwear rental supply and * Johnsons
laundering and linen for the Apparelmaster
premium hotel, catering and Limited
corporate hospitality sector * Stalbridge Linen
Services
Drycleaning
Provides drycleaning, laundry * Johnson Cleaners
and ironing services, carpet UK Limited
cleaning, upholstery cleaning, * Jeeves of
wedding dress cleaning and Belgravia Limited
suede & leather cleaning, and * Alex Reid Limited
the supply of drycleaning
consumables
Facilities management
Delivering building, facilities * SGP Property and
and property management Facilities
services to public, Management Limited
commercial and retail * Workplace
organisations. Engineering Limited
The business segment results for the half year ended 30th June 2008, together with comparative figures, are as follows:
Half year ended 30th June 2008 Textile rental Drycleaning Facilities Unallocated Total
services Management
�m �m �m �m �m
REVENUE
Revenue 60.8 46.1 23.4 - 130.3
Inter-segment revenue - - (0.2) - (0.2)
REVENUE - CONTINUING 60.8 46.1 23.2 - 130.1
Revenue - Discontinued 25.7
Total revenue 155.8
REVENUE EXCLUDING COSTS
RECHARGED TO CUSTOMERS
Revenue 60.8 46.1 18.2 - 125.1
Inter-segment revenue - - (0.2) - (0.2)
REVENUE EXCLUDING COSTS 60.8 46.1 18.0 - 124.9
RECHARGED TO CUSTOMERS -
CONTINUING
Revenue - Discontinued 25.7
Total revenue excluding costs 150.6
recharged to customers
RESULT
Operating profit before intangibles amortisation and 6.5 1.8 1.7 (2.3) 7.7
impairment (excluding software amortisation) and
exceptional items
Amortisation and impairment of (0.7) - (0.9) - (1.6)
intangible assets
Exceptional items
- Restructuring and other 0.1 (0.1) - (6.4) (6.4)
costs
- Profit on disposal of - - - 0.8 0.8
property
Operating profit / (loss) 5.9 1.7 0.8 (7.9) 0.5
Finance costs - Ordinary (7.4)
finance costs
- Exceptional finance (0.7)
costs
Finance income 0.1
Loss before taxation (7.5)
Taxation 2.3
Loss for the period - (5.2)
Continuing
Discontinued operations - (0.9)
Corporatewear
Loss for the period (6.1)
Half year ended 30th June 2007 Textile rental Drycleaning Facilities
Unallocated Total
services Management
�m �m �m
�m �m
REVENUE
Revenue 64.4 46.6 48.4
- 159.4
Inter-segment revenue - - (0.5)
- (0.5)
REVENUE - CONTINUING 64.4 46.6 47.9
- 158.9
Revenue - Discontinued
39.0
Total revenue
197.9
REVENUE EXCLUDING COSTS
RECHARGED TO CUSTOMERS
Revenue 64.4 46.6 25.8
- 136.8
Inter-segment revenue - - (0.5)
- (0.5)
REVENUE EXCLUDING COSTS 64.4 46.6 25.3
- 136.3
RECHARGED TO CUSTOMERS -
CONTINUING
Revenue - Discontinued
39.0
Total revenue excluding costs recharged to customers
175.3
RESULT
Operating profit before intangibles amortisation and impairment (excluding 5.1 2.5 2.5
(2.6) 7.5
software amortisation) and exceptional items
Amortisation and impairment of (0.6) - (1.0)
- (1.6)
intangible assets
Exceptional items
- Restructuring and other (4.2) - (0.2)
(15.9) (20.3)
costs
- Profit on disposal of 1.4 1.2 -
- 2.6
property
Operating profit / (loss) 1.7 3.7 1.3
(18.5) (11.8)
Finance costs
(5.9)
Finance income
0.7
Loss before taxation
(17.0)
Taxation
5.2
Loss for the period -
(11.8)
Continuing
Discontinued operations -
2.3
Corporatewear
Loss for the period
(9.5)
Year ended 31st December 2007 Textile rental Drycleaning Facilities Unallocated
Total
services Management
�m �m �m �m
�m
REVENUE
Revenue 129.0 94.6 94.4 -
318.0
Inter-segment revenue - - (1.2) -
(1.2)
REVENUE - CONTINUING 129.0 94.6 93.2 -
316.8
Revenue - Discontinued
89.3
Total revenue
406.1
REVENUE EXCLUDING COSTS
RECHARGED TO CUSTOMERS
Revenue 129.0 94.6 53.3 -
276.9
Inter-segment revenue - - (1.2) -
(1.2)
REVENUE EXCLUDING COSTS RECHARGED TO CUSTOMERS - CONTINUING 129.0 94.6 52.1 -
275.7
Revenue - Discontinued
89.3
Total revenue excluding costs recharged to customers
365.0
RESULT
Operating profit before intangibles amortisation and impairment (excluding 11.6 6.0 5.9 (5.4)
18.1
software amortisation) and exceptional items
Amortisation and impairment of (1.3) (1.4) (8.6) -
(11.3)
intangible assets
Exceptional items
- Restructuring and other (13.1) (0.1) (1.5) (27.3)
(42.0)
costs
- Profit on disposal of 0.9 1.2 - -
2.1
property
Operating profit / (loss) (1.9) 5.7 (4.2) (32.7)
(33.1)
Finance costs - Ordinary
(12.7)
finance costs
- Exceptional finance costs
(2.7)
Finance income
1.1
Loss before taxation
(47.4)
Taxation
9.0
Loss for the period -
(38.4)
Continuing
Discontinued operations -
(6.5)
Corporatewear
Loss for the period
(44.9)
3 EXCEPTIONAL ITEMS
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Restructuring costs - Textile rental (0.9) (0.6) (9.5)
services
- Drycleaning (0.1) - (0.1)
- Facilities management - (0.2) (1.5)
- Group (0.4) - (4.5)
Total (1.4) (0.8) (15.6)
Professional fees associated with (6.0) - (2.4)
bank restructuring process
Onerous lease and environmental costs - - (3.7)
Write-off of rental stock - (3.6) (3.6)
Write-off of ERP system (software and - (15.9) (16.7)
hardware)
Legal costs and provisions 1.0 - -
Total restructuring and other costs (6.4) (20.3) (42.0)
Profit on disposal of property 0.8 2.6 2.1
Total exceptional items (5.6) (17.7) (39.9)
Exceptional items in relation to discontinued operations have been included within the result from discontinued operations.
In addition to the items above, the Group recognised exceptional finance costs in the period of �0.7 million (June 2007: �nil; December
2007: �2.7 million). The exceptional finance costs during the period relate to the write-off of bank fees on that part of the new bank
facility which was repaid during the period. The exceptional finance costs in the period to December 2007 relate to a fee of �1.5 million
which the Group was required to pay to its bankers as part of the negotiations of a covenant waiver ahead of the December 2007 covenant test
together with the write-off of the remaining �1.2 million unamortised fees paid in respect of the previous facility.
4 ADJUSTED PROFIT BEFORE TAXATION
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Loss before taxation (7.5) (17.0) (47.4)
Intangibles amortisation and 1.6 1.6 11.3
impairment (excluding software
amortisation)
Restructuring and other costs 6.4 20.3 42.0
Profit on disposal of property (0.8) (2.6) (2.1)
Exceptional finance costs in respect 0.7 - 2.7
of bank fees
Adjusted profit before taxation 0.4 2.3 6.5
Taxation (0.1) (0.8) (4.2)
Adjusted profit after taxation 0.3 1.5 2.3
attributable to continuing operations
5 TAXATION
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Current tax
UK corporation tax credit for the (2.2) (0.7) (3.3)
period - continuing operations
Adjustment in relation to previous (0.3) - 1.0
periods - continuing operations
Current tax credit for the period - (2.5) (0.7) (2.3)
continuing operations
Deferred tax
Origination and reversal of temporary 0.2 (4.5) (6.8)
differences - continuing operations
Adjustment in relation to previous - - 0.1
periods - continuing operations
Deferred tax charge / (credit) for 0.2 (4.5) (6.7)
the period - continuing operations
Total credit for taxation included in (2.3) (5.2) (9.0)
the income statement for continuing
operations
Taxation on the restructuring and other costs in the current period has reduced the UK corporation tax charge by �1.8 million (June
2007: �6.0 million reduction; December 2007: �11.8 million reduction). Tax relief on intangibles amortisation has reduced UK corporation
tax by �0.4 million (June 2007: �0.5 million reduction; December 2007: �1.0 million reduction). The tax charge on the property disposals
has increased the charge for taxation by �nil (June 2007: �0.5 million increase; December 2007: �0.4 million increase). The tax relief on
the exceptional finance costs has reduced the charge for taxation by �0.2 million (June 2007: �nil; December 2007: �0.8 million).
Reconciliation of effective tax rate
Taxation for the six months to 30th June 2008 is calculated based on the estimated average annual effective income tax rate of 30.9%
(half year ended 30th June 2007: 30.9%; year ended 31st December 2007: 16.2%), as compared to the tax rate expected to be enacted or
substantively enacted at the annual balance sheet date of 28% (half year ended 30th June 2007: 30%; year ended 31st December 2007: 30%).
Differences between the estimated average annual effective income tax rate and statutory rate include, but are not limited to, the effect of
non-deductible expenses, tax incentives not recognised in profit or loss, the effect of tax losses utilised and under/over provisions in
previous years.
6 EARNINGS PER SHARE
Half year to Half year to Year ended
30th June 2008 30th June 31st
2007 December
2007
�m �m �m
Loss for the period (5.2) (11.8) (38.4)
attributable to Ordinary
Shareholders (continuing
operations)
(Loss) / profit for the period attributable to (0.9) 2.3 (6.5)
Ordinary Shareholders (discontinued operations)
Intangibles amortisation 1.2 1.1 10.3
(excluding software) (net of
taxation) (continuing
operations)
Intangibles amortisation 0.7 0.9 15.1
(excluding software) (net of
taxation) (discontinued
operations)
Exceptional items from 3.8 12.2 28.5
continuing operations (net of
taxation)
Exceptional items from 1.3 0.1 0.8
discontinued operations (net
of taxation)
Exceptional finance costs in 0.5 - 1.9
respect of bank fees (net of
taxation)
Adjusted profit attributable 1.4 4.8 11.7
to Ordinary Shareholders
Weighted average number of 59,418,531 59,293,499 59,295,914
Ordinary shares
Potentially Dilutive options * 1,316,444 254,292 56,055
Fully diluted number of 60,734,975 59,547,791 59,351,969
Ordinary shares
Basic earnings per share
From continuing operations (8.8p) (19.9p) (64.7p)
From discontinued operations (1.6p) 3.9p (11.1p)
From continuing and (10.4p) (16.0p) (75.8p)
discontinued operations
Adjustment for intangibles 2.0p 1.9p 17.3p
amortisation (continuing
operations)
Adjustment for intangibles 1.0p 1.5p 25.6p
amortisation (discontinued
operations)
Adjustment for exceptional 6.4p 20.5p 48.1p
items (continuing operations)
Adjustment for exceptional 2.3p 0.2p 1.3p
items (discontinued
operations)
Adjustment for exceptional 0.8p - 3.2p
finance costs in respect of
bank fees
Adjusted basic earnings per 0.4p 2.5p 3.9p
share (continuing operations)
Adjusted basic earnings per 1.7p 5.6p 15.8p
share (discontinued
operations)
Adjusted basic earnings per 2.1p 8.1p 19.7p
share from continuing and
discontinued operations
Diluted earnings per share
From continuing operations (8.8p) (19.9p) (64.7p)
From discontinued operations (1.6p) 3.9p (11.1p)
From continuing and (10.4p) (16.0p) (75.8p)
discontinued operations
Adjustment for intangibles 2.0p 1.9p 17.3p
amortisation (continuing
operations)
Adjustment for intangibles 1.0p 1.5p 25.6p
amortisation (discontinued
operations)
Adjustment for exceptional 6.4p 20.5p 48.1p
items (continuing operations)
Adjustment for exceptional 2.3p 0.2p 1.3p
items (discontinued
operations)
Adjustment for exceptional 0.8p - 3.2p
finance costs in respect of
bank fees
Adjusted diluted earnings per 0.4p 2.5p 3.9p
share (continuing operations)
Adjusted diluted earnings per 1.7p 5.6p 15.8p
share (discontinued
operations)
Adjusted diluted earnings per 2.1p 8.1p 19.7p
share from continuing and
discontinued operations
* Includes outstanding share options granted to employees and warrants issued to the Company's banks
Basic earnings per share is calculated using the weighted average number of shares in issue during the period, excluding those held by
the ESOP, based on the profit for the period attributable to Ordinary Shareholders.
Adjusted earnings per share figures are given to exclude the effects of intangibles amortisation and impairment (excluding software
amortisation), exceptional items and exceptional finance costs, all net of taxation, and are considered to show the underlying results of
the Group.
For diluted earnings per share, the weighted average number of Ordinary shares in issue is adjusted to assume conversion of all
potential dilutive Ordinary shares. The Company has potential dilutive Ordinary shares arising from share options granted to employees where
the exercise price is less than the average market price of the Company's Ordinary shares during the period and warrants issued to the
Company's banks.
Potential dilutive Ordinary shares are dilutive at the profit from continuing operations level when their conversion to Ordinary shares
would decrease earnings per share or increase loss per share from continuing operations. In the period to 30th June 2008, potential dilutive
Ordinary shares are antidilutive, as their inclusion in the diluted earnings per share calculation would reduce the loss from continuing and
discontinued operations. For the period ended 30th June 2007, potential dilutive Ordinary shares have been treated as antidilutive, as their
inclusion in the diluted earnings per share calculation would reduce the loss from continuing operations. For the period ended 31st
December 2007, potential dilutive Ordinary shares have been treated as antidilutive, as their inclusion in the diluted earnings per share
calculation would reduce the loss from continuing and discontinued operations.
Other than for the issue of 150,000,000 new Ordinary Shares as a result of the placing, the issue of 39,828,824 new Ordinary Shares as a
result of the open offer, the granting of 3,050,000 share options to Senior Management and the granting of 2,493,024 share options under the
Long Term Growth Plan, there were no other material events occurring after the balance sheet date that would have changed significantly the
number of Ordinary Shares or Potential Ordinary Shares outstanding at the balance sheet date, if those transactions had occurred before the
end of the reporting period.
7 DIVIDENDS
No dividends have been paid in the period to 30th June 2008.
On 10th May 2007 a dividend of 15.0p in respect of the 2006 final dividend on the Ordinary shares was approved by Shareholders at the
Annual General Meeting. The dividend, classified within 'other creditors and accruals' at 30th June 2007, was paid on 9th July 2007,
utilising �8.9 million of Shareholders' funds.
8 RETIREMENT BENEFIT OBLIGATIONS
The Group has applied the requirements of IAS 19, 'Employee Benefits' to its employee pension schemes and post-retirement healthcare
benefits.
As part of the Group's objective to reduce its overall pension liability, additional contributions of �1.8 million were paid by the
Group to the Johnson Group Staff Pension Scheme during the period to 30th June 2008 (30th June 2007: �1.4 million; 31st December 2007: �2.8
million) and a separate payment of �2.1 million was paid directly by the purchaser from the consideration of the sale of the Corporatewear
division. In addition, a further contribution of �0.3 million was paid to the WML Final Salary Pension Scheme in July 2008, and monthly
contributions of �0.1 million are being paid into the Johnson Group Staff Pension Scheme for the remainder of 2008.
Following discussions with the Group's appointed actuary it has been identified that an actuarial loss of �9.5 million should be
recognised in the period to 30th June 2008. This is principally as a result of an adverse movement in market assumptions and a significant
fall in the value of equity investments.
The gross retirement benefit liability and associated deferred tax asset thereon, together with the net liability is shown below:
As at As at As at
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Gross retirement benefit liability (21.0) (12.7) (15.8)
Deferred tax asset thereon 6.3 4.2 4.8
Net liability (14.7) (8.5) (11.0)
9 CAPITAL EXPENDITURE AND COMMITMENTS
CAPITAL EXPENDITURE
In the six months ended 30th June 2008 the Group acquired property, plant and equipment and intangible assets with a net book value of
�4.6 million (June 2007: �7.3 million; December 2007: �13.1 million), not including property, plant and equipment and intangible assets
acquired through business combinations. In addition, textile rental items with a net book value of �8.1 million were acquired during the
period (June 2007: �10.3 million; December 2007: �18.5 million).
Offsetting this, property, plant and equipment and intangible assets with a net book value of �0.5 million were disposed of during the
period (June 2007: �17.1 million; December 2007: �27.4 million), not including property, plant and equipment and intangible assets disposed
of through the sale of subsidiaries.
CAPITAL COMMITMENTS
Commitments for future financial expenditure contracted but not provided for in the financial statements are shown below:
As at As at As at
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Property, plant and equipment 0.9 1.3 1.3
0.9 1.3 1.3
10 BUSINESS COMBINATIONS AND DISPOSALS
ACQUISITIONS
The Group has made no acquisitions in the period.
DISPOSALS
On 19th March 2008 Johnson Clothing Limited, the Group's Corporatewear business, disposed of assets including stock, certain supply
contracts and associated goodwill relating to CCM, the company's garment sourcing business, to its fellow subsidiary Johnsons Apparelmaster
Limited. The CCM business was then immediately sold to a third party for an initial cash consideration of �2.6 million with up to a further
�0.2 million deferred consideration.
On 28th April 2008, the Group sold the entire share capital of Johnson Clothing Limited on a debt free cash free basis. The revenue and
profit after tax of Johnson Clothing Limited in the period to the date of disposal, the post-tax loss on disposal together with the net
assets of Johnson Clothing Limited as at the date of disposal were as follows:
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Revenue from discontinued operations 25.7 39.0 89.3
Profit / (loss) before taxation from 0.6 3.2 (5.0)
discontinued operations
Taxation (0.2) (0.9) (1.5)
Profit / (loss) for the period 0.4 2.3 (6.5)
Consideration (net of disposal costs) 84.4 - -
Total net assets disposed of (72.5) - -
Pre-tax Gain on disposal 11.9 - -
Taxation (13.2) - -
Loss on disposal (1.3) - -
Retained (loss) / profit from (0.9) 2.3 (6.5)
discontinued operations
Total Net Assets disposed of:
Goodwill 28.5 - -
Intangible assets 17.0 - -
Property, plant and equipment 2.2 - -
Stock 26.4 - -
Trade and other receivables 16.3 - -
Trade and other payables (17.9) - -
72.5 - -
The cash flows (excluding proceeds from disposal) from discontinued operations included within the consolidated interim cash flow
statement are as follows:
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Net cash (used in) / generated from (5.4) (2.8) 0.9
operating activities
Net cash generated from / (used in) 2.1 (0.7) (1.5)
investing activities
Net cash flow (3.3) (3.5) (0.6)
Cash Received for Disposals
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
Cash Consideration 82.5 - -
Deferred Amount (Received in July 4.6 - -
2008)
Total Consideration 87.1 - -
Costs (2.7) - -
Tax liability (13.2) - -
Pension contribution (2.1) - -
Deferred cash (4.6) - -
Cash received in the period to 30th 64.5 - -
June 2008
Cash received from the disposal of 2.6 - -
CCM in period to 30th June 2008
Total Cash received in respect of 67.1 - -
Disposals included within
the Cash Flow Statement
11 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Other Retained earnings Total
capit premi reser equity
al um ves
�m �m �m �m �m
Balance at 1st January 2007 5.9 12.7 2.4 71.6 92.6
Total recognised income and - - 0.8 2.1 2.9
expense for the period
Dividends - - - (8.9) (8.9)
Issue of share capital - 1.0 - - 1.0
Share options (value of - - - 0.2 0.2
employee services)
Consideration received by ESOP - - - 0.1 0.1
Balance at 30th June 2007 5.9 13.7 3.2 65.1 87.9
Total recognised income and - - (1.3) (39.7) (41.0)
expense for the period
Consideration received by ESOP - - - (0.1) (0.1)
Balance at 31st December 2007 5.9 13.7 1.9 25.3 46.8
Total recognised income and - - 0.5 (12.9) (12.4)
expense for the period
Reserve created on Issue of - - 0.3 - 0.3
Warrants
Share options (value of - - - 0.2 0.2
employee services)
Balance at 30th June 2008 5.9 13.7 2.7 12.6 34.9
12 ANALYSIS OF NET DEBT
Cash and cash Debt due within one Debt due after more Finance leases Total
equivalents year than one year net
debt
�m �m �m �m �m
Balance at 31st December 2006 11.3 - (149.4) (4.4) (142.5)
Cash flow (1.9) - (7.0) 0.5 (8.4)
Other non-cash changes - - 0.9 - 0.9
Balance at 30th June 2007 9.4 - (155.5) (3.9) (150.0)
Cash flow 6.9 - (25.0) 0.9 (17.2)
Other non-cash changes - (106.8) 105.5 - (1.3)
Balance at 31st December 2007 16.3 (106.8) (75.0) (3.0) (168.5)
Cash flow (10.7) 102.3 (42.3) 0.6 49.9
Other non-cash changes - 0.6 (0.1) - 0.5
Balance at 30th June 2008 5.6 (3.9) (117.4) (2.4) (118.1)
13 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Half year to Half year to Year ended
30th June 30th June 31st
2008 2007 December
2007
�m �m �m
(Decrease) / increase in cash in the (10.7) (1.9) 5.0
period
Cash inflow / (outflow) on change in 60.6 (6.5) (30.6)
debt and lease financing
Change in net debt resulting from 49.9 (8.4) (25.6)
cash flows
Effect of recognition and 1.2 0.9 (0.4)
amortisation of bank facility issue
costs
Effect of capitalised interest on (0.7) - -
bank facility
Movement in net debt during the 50.4 (7.5) (26.0)
period
Opening net debt (168.5) (142.5) (142.5)
Closing net debt (118.1) (150.0) (168.5)
14 RELATED PARTY TRANSACTIONS
Transactions during the year between the Company and its subsidiaries, which are related parties, have been conducted on an arms length
basis and eliminated on consolidation.
Full details of the Group's other related party relationships, transactions and balances are given in the Group's financial statements
for the year ended 31st December 2007. There have been no material changes in these relationships in the half year to 30th June 2008 or up
to the date of this report.
15 EVENTS AFTER THE BALANCE SHEET DATE
Placing
On 11th June 2008, the Group announced a conditional non pre-emptive placing to institutional and other professional investors of
150,000,000 new Ordinary Shares at 20 pence per Ordinary Share. The placing duly completed on 7th July 2008, raising �30 million (�27.8
million net of expenses). The placing represented approximately 252.2 per cent. of the existing issued share capital of the Group as at 11th
June 2008 and approximately 71.6 per cent. of the issued share capital of the Group post placing.
Open Offer
On 6th August 2008, the Group announced that it proposed to raise up to approximately �10 million (�9 million net of expenses) by way of
an open offer made to qualifying shareholders and warrantholders of up to 49,945,035 open offer shares at the issue price of 20 pence per
open offer share. The principal reason for making the open offer was to provide qualifying shareholders an opportunity to invest in the
Group at the same price at which the placing shares were issued and to mitigate the dilutive effects of the placing. The minimum pro rata
entitlement of qualifying shareholders and warrantholders under the open offer was calculated on the basis of 8 open offer shares for every
10 Ordinary Shares or entitlement to 10 warrant shares (as the case may be) held.
The open offer duly completed on 8th September 2008, raising �8.0 million (approximately �7.2 million net of expenses). The 39,828,824
shares issued as a result of the open offer represent approximately 19.0 per cent. of the existing issued share capital of the Group as at
6th August 2008 and approximately 16.0 per cent. of the issued ordinary share capital of the Group post open offer.
16 PUBLISHED FINANCIAL STATEMENTS
Copies of the interim report are to be sent to Shareholders and will be available to members of the public at the Company's registered
office at Johnson House, Abbots Park, Monks Way, Preston Brook, Cheshire WA7 3GH. The report can also be accessed on the internet at
www.johnsonplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR VVLFBVKBBBBB
Johnson Service (LSE:JSG)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Johnson Service (LSE:JSG)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
