Johnson Service Group plans move to Main Market

(Sharecast News) - Johnson Service Group announced plans to transfer its listing from AIM to London's Main Market on Wednesday, alongside an extension of its share buyback programme to £30m.

The textile services provider said the move, expected by early August, followed consultations with major shareholders and reflected the board's view that a Main Market listing would provide greater access to capital, broaden its investor base, improve liquidity, and raise the company's corporate profile.

It said the transition would be effected via an introduction of existing shares and would not involve a capital raise or the issue of new equity.

JSG shares had been listed on AIM since June 2008, with the company saying it had delivered a strong financial track record and shareholder returns over that period.

Upon admission to the Main Market, the group's AIM listing would be cancelled.

Separately, JSG said it was expanding its existing share buyback programme.

Of the £15m authorised in March, £10.4m had already been deployed.

A further £15m would now be made available, bringing the total size of the programme to £30m, effective immediately and running no later than 31 December.

The company said it had amended its agreement with Investec, which would continue to manage the buyback independently.

JSG noted that, due to low liquidity in its shares, future purchases could exceed the 25% daily volume limit outlined in market abuse regulations, though they would remain below 50%.

At 1111 BST, shares in Johnson Service Group were down 3.37% at 143.6p.

Reporting by Josh White for Sharecast.com.