Johnson Service Share Discussion Threads

[jo0ls] 09/9/2009 23:52

Hoodless Brennan:

Johnson Services (JSG, 21.5p £53.6m) Interims to June 2009 Revenues rose to £116.3m (£124.9m) with an underlying pre-tax profits of £4.8m (£0.4m) with EPS of 1.3p (0.4p), a 0.25p (nil) DPS and debt reduce to £75.5m (£78.5m).

The Textile business continues to win new accounts, though it is seeing existing users reducing their activity due to cost cutting. Dry cleaning is ahead of expectations and the facilities management operations have been winning new contracts as well, partially offset by no improvement in Agency or Capital projects.

Forecasts of £12m pre-tax profits, 3.27p EPS with 0.9p DPS put the group on a prospective PER of 6.6x with a 4% yield. While the debt is a concern we maintain our BUY recommendation, last iterated on 07/05/09 at 16.25p, but with a raised target price from 22p to 26p.

[cammy3] 09/9/2009 17:23

I hold 125,000 of these and will now tuck away. I am much happier knowing the co is in profit and will be a good recovery story. Thanks for all your reviews Chrysippus, very helpful indeed. I'm now moving off this board and concentrating on 600 group. Chrysippus, any views on 600 group. Happy to hear from you on that BB. I have my own strong opinion on 600 but DYOR.

[crawford] 09/9/2009 17:16

ydderF,
what about SAF is it a boat float?

[ydderf] 09/9/2009 15:53

negative shareholder funds and huge debt probably has something to do with the cautious reception, there will probably be a rights issue if the price moves up much more - how else are they going to extinguish the debt before the next downturn when interest rates rise?

meanwhile every boat gets floated in the new credit bubble - buy anything, so for this 'reason' its going up isn't it crookeny?

[jmiddy] 09/9/2009 15:45

yeah i'm disappointed as well. bought on Monday...

[ian77] 09/9/2009 15:37

Its time someone said something I cannot understand this stock parhaps they should have posted a loss!!!!!!!! 20% up and down in the day and close lower££££££

[busthief2] 09/9/2009 15:27

JSG should get some good press coverage.........maybe a weekend buy tip?

[boobly] 09/9/2009 13:58

Just a little bit of a disappointing share price today .
Some people just prefer to travel than arrive .
Not to worry , this WILL be substantially rerated soon .
Press coverage to come .

I`m very curious to know why this share regularly seems to drop into an extended Auction .
Anyone got any ideas ?

[foodcritic] 09/9/2009 09:49

BB, yes looking forward to that one.

[busthief2] 09/9/2009 09:43

The ex dividend date is 14 October 2009

[8trade] 09/9/2009 09:26

On the plus side a sale of one of their business's could eliminate
a lot of that debt if they needed to do that.

[cammy3] 09/9/2009 09:24

MM's obviously looking to pick up stock at 21p before next rise.

[debbiegee] 09/9/2009 09:13

1st presss reports coming out

[battlebus] 09/9/2009 09:11

Morning Foodcritic off topic i see recruitment co's are saying the number of jobs on offer are increasing so recession could be coming to an end. Work looking really cheap. 22nd for results. Sorry everyone back to JSG.

[snobtimus shaime] 09/9/2009 09:09

the signalling effect of paying one :)

[8trade] 09/9/2009 09:07

GG.

Spot on, the debt was always for me the most important issue and like
you i did not feel it had dropped enough when things elsewhere look to
have held up very nicely, just worried that if they dont get it down in
the good times what happens if things were to take a turn for the worse ?

TBO why pay a .25p dividend, it's too small to make a difference to anybody
except a very large shareholder, better off paying off some debt with the
money instead.

[foodcritic] 09/9/2009 08:57

Morning battlebus, I usually say that when I get a suit dry cleaned, about £14 with a permanent crease!

[battlebus] 09/9/2009 08:50

Wheres my glasses!

[greengiant] 09/9/2009 08:49

The only blot on this one is the debt figure - the company generated £15m from operating activities but only managed to reduce debt by a miniscule £2.4m. All this in a period of extremely low interest rates. Although debt is no longer such a dirty word, JSG do need to continue to actively manage it down. Good share, but not for me

gg

[foodcritic] 09/9/2009 08:48

Yeah I suppose buying below 15p somewhere you could get 50%ish in 2 months but they are on the road to recovery, why sell now? Shortsighted imo.

[iantrader2] 09/9/2009 08:42

results were only inline. Broker expecting fy pbit £12m

[bluesky1st] 09/9/2009 08:42

Classic sell on the news brigade, however, once the market get's it's head around the potential here the price will step up.

A buy and hold for big rewards imo.