JSG Johnson Service Group Plc

 

TIDMJSG 
 
RNS Number : 2295F 
Johnson Service Group PLC 
08 January 2010 
 

8th January 2010 
 
 
Johnson Service Group PLC 
 
Pre Close Trading Statement 
 
 
As indicated in December, the Group traded satisfactorily during 2009 giving an 
overall result in line with expectations despite the challenging conditions 
within the UK economy throughout the last 12 months. 
 
Textile Rental 
 
Profits in the Textile Rental division are expected to show a modest increase 
over 2008 despite lower revenue. As reported at the half year, the Textile 
Rental division has been impacted by both a higher incidence of business 
closures and by reduced spending by existing customers. This has resulted in 
reduced revenue and profitability in Johnsons Apparelmaster compared with 2008, 
with the second half revenue similar to that experienced in the first 6 months 
of 2009. We are pleased with new customer wins and we believe that we are 
continuing to gain market share. 
 
 
Stalbridge has continued to focus on customer service and has had success in 
winning new customers. It has traded above our expectations in the second half, 
as the business continued to improve efficiency, and it has made a contribution 
of some GBP1 million for the year as a whole as compared to the GBP0.5 million 
loss incurred in 2008. 
 
Drycleaning 
 
Our Drycleaning business has continued to see varying levels of high street 
spending and like for like sales in the second half were only slightly improved 
on those experienced in the first half. The investment in modernising stores to 
promote the GreenEarthtechnology has continued and we remain encouraged by the 
revenue growth in the GreenEarth  branded stores. However, although management 
action had been taken to reduce costs, profits were lower than in 2008, 
exacerbated by the very poor weather in December. 
 
 
 
 
Facilities Management 
 
SGP has achieved modest profitability and revenue growth in a very difficult 
market in 2009, absorbing the impact of the recent failure of Threshers and the 
continuing pattern of existing customers restricting their spending levels, 
including that on major project work. 
 
A significant number of contract renewals have been signed during 2009 in 
addition to new wins such as Subway, Scottish & Newcastle and South West Hants 
LIFT, all of which are now on stream. The expansion of the Public Sector PFI 
contract portfolio continued with Worcester Library, due to come on stream at 
the end of 2010. 
 
In 2010 we are intending to invest in additional infrastructure to enable the 
SGP management team to achieve accelerated growth in the medium to longer term, 
although this will restrict profit growth in the current year. 
 
Net Debt 
 
 Net debt at the end of December is expected to be approximately GBP68.0 
million (June 2009: GBP75.5 million). As announced on 21st December 2009 the 
Group has secured new bank facilities to April 2013 at an initial amount of 
GBP78.5 million. 
 
Summary 
 
Trading conditions remained challenging throughout 2009 and in these 
circumstances we are pleased to be anticipating an overall result in line with 
expectations. 
 
 
 
Enquiries: 
+--------------+--------------+ 
| Johnson      |              | 
| Service      |              | 
| Group        |              | 
| PLC          |              | 
+--------------+--------------+ 
| John         | Yvonne       | 
| Talbot,      | Monaghan,    | 
| Executive    | Finance      | 
| Chairman     | Director     | 
+--------------+--------------+ 
| Tel:         | Tel:         | 
| 01928 704600 | 01928 704600 | 
+--------------+--------------+ 
 
 
Threadneedle Communications 
Graham Herring/John Coles 
Tel: 020 7653 9850 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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