Johnson Service Group PLC Update on Impact of COVID-19 (8801G)
20 March 2020 - 6:00PM
UK Regulatory
TIDMJSG
RNS Number : 8801G
Johnson Service Group PLC
20 March 2020
20 March 2020
AIM: JSG
Johnson Service Group PLC ("JSG")
Update on Impact of COVID-19
As reported on 2 March 2020, JSG's trading up to that date had
been in line with management's expectations, building on the strong
profitable growth seen in the financial year ended 31 December
2019.
In recent weeks the Group has started to experience a slowdown
in certain areas of its operations linked to COVID-19, particularly
within our HORECA business, which serves the Hotels, Restaurant and
Catering markets. These market segments have seen reduced demand
which has resulted in a significant reduction in our processing
volumes, particularly in the last few days. Our Workwear business
has seen limited impact to date, although it is reasonable to
expect that some Workwear customers will see an impact from
COVID-19 in due course.
As a reminder our debt, excluding the impact of IFRS 16, at the
end of 2019 was GBP87.7 million, resulting in a leverage ratio
(calculated in accordance with our bank facilities) of 1.3:1
against a bank covenant requirement of not more than 3:1. Debt has
remained at a similar level to date and our committed bank
facilities are GBP135 million, running to August 2023.
We have taken immediate action to limit capital expenditure on
both plant and equipment and on new textile rental items and have
cancelled all non-essential revenue expenditure. We have also
commenced discussions with our banks regarding increased bank
facilities.
Actions are being taken to reduce operational costs,
particularly in the businesses most affected by the drop off in
volumes, but also in the wider Group.
Given the current need for prudent cash management, the Board
has decided that it will, at the forthcoming Annual General Meeting
on 5 May 2020, withdraw Resolution 3 in the Notice of Annual
General Meeting relating to the final dividend payment of 2.35p per
Ordinary share.
While the full implications of COVID-19 on the financial
performance for the current financial year are difficult to
determine at this stage, the Board remains confident in the future
prospects and viability of the Group.
Our priority remains the health and wellbeing of our employees
and customers and we are continuing to ensure that we have the
appropriate measures and precautions in place for their safety.
ENQUIRIES
Johnson Service Group PLC (www.jsg.com)
Peter Egan, CEO
Yvonne Monaghan, CFO
Tel: 01928 704 600
Investec Investment Banking (NOMAD) Camarco (Financial PR)
David Flin Ginny Pulbrook
Carlton Nelson Ben Woodford
Virginia Bull Oliver Head
Tel: 020 7597 4000 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, processing over 1.7 million
items per week. It also provides premium linen services for the
hotel, catering and hospitality markets, and high-volume hotel
linen services, processing over 600 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGPUBUWUPUGMB
(END) Dow Jones Newswires
March 20, 2020 03:00 ET (07:00 GMT)
Johnson Service (LSE:JSG)
Historical Stock Chart
From Apr 2024 to May 2024
Johnson Service (LSE:JSG)
Historical Stock Chart
From May 2023 to May 2024