Johnson Service Regulatory News (JSG)

28 Dec 2007 13:20

Johnson Service Group PLC28 December 2007 28 December 2007 JOHNSON SERVICE GROUP PLC UPDATE Banking The Board is pleased to announce that it has successfully agreed with itsbanking group a waiver of its year end covenant test. In exchange for the waiverthe Company has granted the Banks security over its assets, agreed to pay theBanks a fee and incur increased interest costs. The Company has also grantedsecurity over its assets to its pension funds. The Company is required tonegotiate with the Banks a longer term banking solution before 30th April 2008. 2008 profit before tax The Board expects to incur additional exceptional restructuring costs in both2007 and 2008 as well as higher interest costs in 2008 as a result of itsamended banking arrangements. Whilst trading overall remains in line withexpectations and the Board continues to believe that expected pre-exceptionaloperating profits for 2008 will be at a broadly similar level to 2007, thehigher interest costs will result in lower than expected profit before tax for2008. Board changes The Board also announces that Charles Skinner, Chief Executive, has todayresigned from the Board following agreement with the Board that a different setof skills are required in the Company's current situation. The Board wishes tothank Charles for all his efforts in the recent difficult circumstances.John Talbot, who has been working with the Company as a consultant duringDecember this year, has been appointed as interim Chief Executive Officer and hejoins the Board with immediate effect. John has over 25 years turnaround and restructuring experience and hasconsiderable experience assisting companies in difficult situations. He wasformerly Global Head of Arthur Andersen's Corporate Finance and CorporateRecovery practice until 1999. John is now a Senior Partner at Kroll TalbotHughes, a leading European turnaround and restructuring advisory firm. The Boardis confident that this experience will prove invaluable in the development andimplementation of a recovery plan for the Group. John Talbot was a Non-Executive Director of IWP International plc from Januaryto March 2006. The Board confirms that there is no other information to bedisclosed under the requirements of Listing Rule 9.6.13 in relation to hisappointment Enquiries Johnson Service Group PLCSimon Sherrard, Chairman 020 7796 4133 Hudson SandlerWendy Baker 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange