Sale of assets

Johnson Service Group PLC 19 March 2008 19 March 2008 Johnson Service Group PLC (the 'Group') Sale of assets Johnson Service Group PLC, the textile related services and facilities management Group, announces that it has today sold certain assets to Alsico Laucuba Limited ('Alsico'), a subsidiary of Alsico NV, a Belgian manufacturer of uniforms to textile rental companies across Europe. The assets include stock; certain supply contracts previously owned by the Group's CCM garment sourcing business and associated goodwill. Certain overheads will also be transferred to Alsico, including leases over fixed assets and CCM's warehouse at Fulwood, Preston. The initial consideration will be approximately £2.6 million in cash, with further cash payments in quarterly instalments over a three year period up to a maximum of approximately £200,000, dependent on the level of sales achieved. The decision to sell the assets was taken following a review of the long term business opportunities available to CCM and in the light of a major contract loss mentioned in our January trading update. This review determined that it would be difficult for CCM to grow its business by winning new clients in the UK textile rental sector, many of whom compete directly with Johnsons Apparelmaster, the Group's market leading workwear rental business. The transaction will deliver cash proceeds to the Group, while securing long-term supply arrangements for the Johnsons Apparelmaster business. The operating profit attributable to the assets sold was approximately £2.3 million in the year to 31 December 2006 of which some £1.1 million related to profit on the internal supply of garments to Johnsons Apparelmaster. The gross value of the assets was recorded as £2.7 million at 31 December 2006. The proceeds of the sale will be used for general corporate purposes. The sale will result in a write-down of goodwill of approximately £11.8 million in the financial year to 31 December 2007. Enquiries: Hudson Sandler Michael Sandler, Sandrine Gallien, Fran Read Telephone: 020 7796 4133 For more information on Johnson Service Group PLC: www.johnsonplc.com This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings