This site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about cookies used on Trustnet and how you can manage them, see our Privacy and Cookie Policy.

By clicking "I Agree" below, you acknowledge that you accept our Privacy Policy and Terms of Use.

For more information Click here



It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table
Share   Print      RSS

Johnson Service Grp. (JSG)

Johnson Service Grp.

Update on Impact of COVID-19
RNS Number : 8801G
Johnson Service Group PLC
20 March 2020


20 March 2020


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 £87.7 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 £135 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.




Johnson Service Group PLC (



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


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 or visit
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

You are currently using an old browser which will not be supported by Trustnet after 31/07/2016. To ensure you benefit from all features on the site, please update your browser.   Close