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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Business & education services

Johnson Service in cash preservation mode as restaurants and hotels suffer

Capital expenditure has been scaled back and all non-essential revenue expenditure stopped

Johnson Service Group (LON:JSG) joined the growing list of companies to suspend their dividend and go into full cash preservation mode.

The linen rental group said its hotel and catering business customers are now feeling the brunt of the lockdowns with volumes tumbling, especially in the last few days.

Workwear is holding up better, but even here Johnson expects to see a downturn in the future.

Capital expenditure has been scaled back and all non-essential revenue expenditure stopped with talks underway with its banks to boost its facilities.

Debt was £87.7mln at the end of 2019 and has remained at a similar level to date.

Committed bank facilities are £135mln.

Shares rose 10% to 101p.

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