Johnson Service Group PLC Pre-close Trading Update and Acquisition (6120Y)
January 03 2020 - 2:00AM
UK Regulatory
TIDMJSG
RNS Number : 6120Y
Johnson Service Group PLC
03 January 2020
3 January 2020
AIM: JSG
Johnson Service Group PLC
("JSG" or "the Group")
Pre-close Trading Update and Acquisition of Fresh Linen Holdings
Limited
"A year of strong strategic and operational performance"
JSG, a leading UK textile services provider, is pleased to
provide a trading update for the year ended 31 December 2019.
Trading Update
Our GBP10.0 million investment plan in our new high volume linen
plant in Leeds remains on target for opening in the Spring of this
year. This will provide extra processing capacity ahead of the busy
summer months.
We remain positive about the future prospects for the business
and we expect to announce full year results slightly ahead of
market expectations.
Acquisition
On 30 November 2019 we completed the acquisition of the entire
issued share capital of Fresh Linen Holdings Limited ("Fresh"),
together with its trading subsidiary Fresh Linen Limited, for a
cash consideration of GBP12.5 million on a debt free, cash free
basis and subject to an adjustment for normalised working capital.
The consideration includes the freehold site.
As reported in the audited, statutory accounts for the year
ended 30 June 2019, Fresh generated revenue of GBP16.7 million and
profit before taxation of GBP1.1 million. The results for Fresh are
reported on the basis of the accounting policies of the business
and will be aligned to the rest of the Group post completion.
Reported net assets at 30 June 2019 were GBP4.3 million, including
a freehold site with a net book value of GBP1.7 million.
The business, which has some 340 employees and operates from its
freehold main site in Clacton-on-Sea and through a transport
distribution hub in Rainham, London, regularly supplies over
900,000 items of linen a week, predominantly to hotels and gym
clubs in the hospitality market in the South East of England.
The acquisition meets with our continuing growth strategy to
increase the size and scale of our hospitality services in the UK
and extend our geographical reach as well as further diversifying
the customer profile base within the Johnsons Hotel Linen
portfolio. This transaction demonstrates our ability to acquire
good quality businesses offering complementary services to our
existing locations and clients.
We expect to announce the full year results on Monday 2 March
2020.
Peter Egan, Chief Executive Officer of JSG, commented:
"This has been a strong trading period despite the general
uncertainty in the UK economy. We have achieved consistent organic
growth and, with this latest acquisition in the South East, are
expanding into a new geographical area where we are currently under
represented for servicing our high volume linen customers.
We are delighted that 2020 will see the opening of the new plant
in Leeds providing further capacity and are confident that with
these new geographies, our established client base and operational
expertise, we will continue to deliver future organic growth."
ENQUIRIES:
Johnson Service Group PLC
Peter Egan, CEO
Yvonne Monaghan, CFO
Tel: 01928 704600
Investec Investment Banking (NOMAD) Camarco (Financial PR)
David Flin Ginny Pullbrook
Carlton Nelson Ben Woodford
Oliver Head
Tel: 020 7597 5970 Tel: 020 3757 4992
About Johnson Service Group PLC
www.jsg.com
Headquartered in Preston Brook, Cheshire, JSG provides textile
services across the UK. The Group is the leading supplier of
workwear and protective wear in the UK, clothing over 1.3 million
people a week. It also provides premium linen services for the
hotel, catering and hospitality markets, and high-volume hotel
linen services, processing over 500 million items a year. With its
core values of quality, reliability and service, the Group aims to
provide customers with an outstanding level of customer care.
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END
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