Business
AGM Statement and Update on COVID-19
AGM Statement and Update on COVID-19.
About this update from Johnson Service Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 8825L\n Johnson Service Group PLC\n 05 May 2020\n \n \n \n \n \n \n \n 5 May 2020\n \n \n AIM: JSG\n \n \n Johnson Service Group PLC\n \n \n \n \n \n AGM Statement and Update on Further Actions in Response to COVID-19\n \n \n \n \n \n Johnson Service Group PLC (the \"Company\" or the \"Group\"), a leading UK textile services provider, provides an update on its strong financial and liquidity position and the actions taken in response to COVID-19 since its previous announcement on 20 March 2020.\n \n \n \n \n \n Trading Update\n \n \n The Group is continuing to see a significant amount of disruption across its markets, prompting the Board to implement appropriate mitigating actions.\n \n \n \n \n \n Our \n Workwear business, which provides garment rental, protective wear and laundry services is continuing to supply key industries and all our processing sites remain open. Whilst trading for the first two months of the year was in line with our expectations, we subsequently saw a reduction in requirements from certain, mainly blue collar, industries although we are seeing some increased demand from our food customers which partly offsets this. Organic growth within our Workwear business for the first quarter overall was slightly negative and trading in April was some 12% down.\n \n \n \n \n \n Within HORECA, which serves the Hotel, Restaurant and Catering markets, we have ceased processing at the vast majority of our 18 sites as the demand for linen has significantly reduced from most sections of the hospitality market. Organic growth for the first two months of the year was particularly strong at 9%, however, March saw volumes reduce resulting in a negative organic growth in the month of 27%. In April, revenue fell by some 97% on an organic basis due to the closure of the vast majority of our hospitality customers.\n \n \n \n \n \n Due to the reduction in demand we have furloughed a significant proportion of our employees, most notably in the HORECA division. The Board and Senior Management Team have all accepted a temporary salary reduction of 20%, initially for a three-month period from 1 April 2020, and the majority of other employees in support and administration roles who have not been furloughed have accepted a salary...