INTERIM RESULTSfor the 26 weeks ended 26 June 2004

S E R V I C E G R O U P P L C

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Interim Results – June 2004

“..very encouraged by the progress that we

have made..”

Introduction

Stuart Graham, CEO

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Financial Review

Mike Sutton, CFO

Interim Results – June 2004

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Interim Results – June 2004

2004 ACQUISITIONS

Acquisitions completed to June 2004

Cost £4.9 million

Annualised turnover £13 million

Acquisition completed July 2004

Cost up to £27.4 million

Annualised turnover £28 million

“..targeted acquisitions..

that offer attractive long term growth potential.”

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Interim Results - June 2004

TURNOVER

“..in line with expectations..”

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Interim Results - June 2004

PROFIT AND LOSS ACCOUNT

2004 £m

2003 £m

Change %

Adjusted operating profit1 14.0 13.4 4.5

Interest (1.9) (2.2)

Adjusted PBT2 12.1 11.2 8.0

Goodwill amortisation and exceptional items (3.2) (16.7)

PBT 8.9 (5.5)

Margin3 -continuing 11.1% 13.4%

1 Excludes goodwill amortisation2 Excludes goodwill amortisation and exceptional items3 Excludes goodwill amortisation, exceptional items and costs recharged to customers

Adjusted operating profit1

2004 £m

2003 £m

Continuing 14.0 12.9

Discontinued - 0.5

14.0 13.4

Goodwill amortisation and exceptional items

Amortisation of goodwill (3.2) (2.6)

Loss on disposal of CCG - (10.5)

Loss on disposal of NI - (3.6)

(3.2) (16.7)

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Interim Results - June 2004

EARNINGS PER SHARE (ADJUSTED)

2004 £m

2003 £m

Change %

Adjusted profit before taxation1 12.1 11.2 8.0

Taxation2 (3.6) (3.2)

Adjusted profit after taxation1,2 8.5 8.0

Number ordinary shares

(fully diluted)

58.3m

57.2m

Adjusted EPS1,2 14.6p 14.0p 4.3

Interim dividend 4.2p 4.0p 5.0

Total dividend 17.6p

1 Excludes goodwill amortisation and exceptional items2 Excludes tax credit relating to agreement of specific non-recurring matters in

prior periods (2003)

“..invested in our established

businesses..”

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Interim Results - June 2004

SUMMARY BALANCE SHEET

June 2004

£m

Dec 2003*

£m Fixed Assets 174.7 175.4

Current assets 75.9 62.3

Current liabilities (77.1) (70.7)

Financing (net of cash) (43.7) (43.4)

Liabilities > 1 year (4.1) (3.8)

Provisions (17.3) (14.9)

NET ASSETS 108.4 104.9

Fixed assets

June 2004

£m

Dec 2003*

£m Intangible fixed assets 86.8 89.8

Tangible fixed assets

- property, plant & equipment

65.6

64.2

- rental items 22.3 21.4

174.7 175.4

Provisions Deferred tax 1.2 0.7

Pension contributions 1.8 2.0

Private healthcare 1.8 1.8

Property 10.2 8.2

Self insurance 2.3 2.2

17.3 14.9

* Restated

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Interim Results - June 2004

CASHFLOW AND NET DEBT

1 Excludes goodwill amortisation

2004 £m

2003 £m

Operating profit1 14.0 13.4

Depreciation 10.7 13.8

Working capital (0.4) (0.3)

Provisions 0.3 1.3

Other (0.6) (0.4)

24.0 27.8

Depreciation

Property, plant and equipment

4.4 5.4

Rental items 6.3 8.4

10.7 13.8

Capital expenditure (net)

Property, plant and equipment

- purchases (3.0) (2.2)

- disposals 1.0 0.9

Rental items

- purchases (8.6) (10.2)

- disposals 2.3 2.5

(8.3) (9.0)

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Interim Results - June 2004

TEXTILE & HOSPITALITY SERVICES

2004 £m

2003 £m

Change %

Continuing

Turnover 65.1 60.2 8.1

Adjusted operating profit1 (7.9)

8.2 8.9

Margin1 12.6% 14.8%

1 Excludes goodwill amortisation

Segment includes:

Johnsons Apparelmaster, CCM, Stalbridge Linen Services, Johnson Hospitality Services

Turnover

52%

Textile & hospitality services

Adjusted operating

profit1

59%

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Interim Results - June 2004

DRYCLEANING

2004 £m

2003 £m

Change %

Continuing

Turnover 41.4 35.8 15.6

Adjusted operating profit1 12.5

4.5 4.0

Margin1 10.9% 11.2%

Segment includes:

Johnsons Cleaners (incl. Sketchley), Jeeves

1 Excludes goodwill amortisation

Turnover

33%

Adjusted operating

profit1

32%

Drycleaning

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Interim Results - June 2004

FACILITIES MANAGEMENT & SPECIALIST SUPPLIES

Turnover2

15%

Facilities management &specialist supplies

Adjusted operating

profit1

9%

Segment includes:

Johnson Workplace Management & Alex Reid

2004 £m

Continuing

Turnover2 19.2

Adjusted operating profit1

1.3

Margin1,2 6.8%

1 Excludes goodwill amortisation2 Excludes costs recharged to customers

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Interim Results - June 2004

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

Timetable

Balance sheet

Income statement

Bank covenants

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Review and Outlook

Stuart Graham, CEO

Interim Results - June 2004

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Interim Results - June 2004

OVERVIEW

Targeted acquisitions

Stabilisation of Johnsons Apparelmaster

Expansion of drycleaning

Increased range of services

Strong market positions

“..considerable amount of

activity..over the last two years..”

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Interim Results - June 2004

DIVISIONAL STRATEGY AND PERFORMANCE

“..we continue to identify cost reductions..”

Johnsons Apparelmaster

– Continued wearer attrition

– Restructured sales team

– Cost reductions and production efficiency improvements

CCM

– Expanding product range

– Continued growth

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Interim Results - June 2004

DIVISIONAL STRATEGY AND PERFORMANCE

Stalbridge Linen Services

– Strong growth continued

– Quality and service

Johnson Hospitality Services

– Largest hospitality and event hire company

– HSS Event Hire acquisition

“..considerable success in

developing new accounts..”

“..the range of product..was expanded..”

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Johnsons Cleaners (incl. Sketchley)

– Market leader in UK with c620 branches

– 103 Sketchley branches acquired in May 2004

– 150 units converted to GreenEarth®

– Roll out of new EPOS commenced

– Increased presence in South East

Jeeves of Belgravia

– New store opened

– New shop design developed

Interim Results - June 2004

DIVISIONAL STRATEGY AND PERFORMANCE

“..encouraging sales increase that

reflected the quality and range of services..”

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Interim Results - June 2004

DIVISIONAL STRATEGY AND PERFORMANCE

“..we see considerable

growth potential..”

Dimensions Corporatewear

– Acquired July 2004

– Leading supplier of corporatewear

– Growing market

– Potential to enter Europe

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Interim Results - June 2004

DIVISIONAL STRATEGY AND PERFORMANCE

Johnson Workplace Management

– Strong organic growth

– Expanded range of service delivery

Alex Reid

– Launched GreenEarth ® to independent sector

– Enlarged product range

– New supply chain

“..continues to perform well..”

“..initial reaction very positive..”

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Interim Results - June 2004

OUTLOOK

Strategy of organic growth and selective acquisition

Continued investment in established businesses

Long term growth prospects

Reorganisation and integration

Summary

“..anticipate a satisfactory outcome

for the year..”