30th June 2009

Interior Services Group PLC

Pre Close Trading Statement

The Board of ISG is pleased to announce that trading for the year ended 30 June 2009 has remained in line with the Board's expectations.

The Board is pleased to note that the success of the group's diversification strategy has ensured that the decline anticipated in London fit out and refurbishment has been offset by stronger trading in our Retail and Regional businesses which has been driven by our frameworks with banks and food retailers and by public sector work.

The group's strategy remains to position itself towards more resilient regions and sectors and where a decline in activity is anticipated, to ensure the group's resource base remains in line.

As previously noted, some of our clients, particularly those operating across several countries, have become more cautious in the wake of Lehman's collapse. Consequently, there have been a few cancellations and some delay to certain projects particularly affecting our European operations. Elsewhere overseas, particularly in China, we are experiencing good levels of activity and continue to establish and position ourselves to win projects in growing markets of which Abu Dhabi is an excellent recent example. Since March 2009 we have started to see corporate clients becoming more confident and both enquiry levels and proposals intake have started to improve for our overseas activities.

At the interim stage we reported that the order book would reduce as the longer lead time UK fit out, new build and refurbishment projects in the UK are replaced with higher margin, negotiated work across our Retail business and in Europe and Asia. The current order book stands above �800m, of which �680m relates to the financial year ending 30 June 2010. ISG's balance sheet remains sound and we expect to finish the year with a strong cash position.

The preliminary results will be announced on 8 September 2009.

ISG plc, the international construction services group, will announce interim results for the period ended 31 December 2014 on Tuesday 3 March 2015.

A presentation for analysts will take place at 11.30am on that morning at ISG's offices located at Aldgate House, 33 Aldgate High Street, London EC3N 1AG. Please confirm your attendance to francesca.cadoni@instinctif.com

Trading Update

Current Trading

The Group's UK Fit Out and Engineering Services, UK Retail and International divisions have performed well during the period and in aggregate for the half year have exceeded the Board's expectations. However, trading in UK Construction has been further adversely impacted by the performance of three contracts procured more than eighteen months ago that has offset these improvements.

Furthermore the Group is in protracted negotiations on one large construction contract entered into in 2012, and has decided to make a significant provision against this contract. As a consequence of this additional provision, the Board now expects the full year results from continuing operations to be c£7m below its expectations set at the time of the AGM statement announced on 5 December 2014.

UK Construction

The Group has been restructuring its UK Construction division over the past eighteen months. The trading update made today is a result of the completion of an internal contracts performance review within UK Construction (including the discontinued activities) in preparation for the Group's half year results by the recently appointed divisional managing director.

This review has focussed on the appropriateness of internal judgements and forecasts of contract recoveries. In particular the review has focussed on projects that were procured more than eighteen months ago when market conditions were less favourable, where there has been project deterioration and on the close out of outstanding contracts within previously discontinued operations.

Performance from ongoing activities in UK Construction in the first half of the current year, excluding the older contracts mentioned, has been profitable reflecting the Group's initiatives to improve procurement, bid and risk management. The business has continued to focus on winning work from repeat customers and frameworks, and on reducing open market tendering. Contracts procured since the start of the financial year continue to be secured on significantly improved terms.

Exceptional costs from Discontinued Operations

The Group also announces today that it is discontinuing its London Exclusive Residential activities at a cost of £6m and is making further provisions for increased losses of £11m related to the closure of its Tonbridge office and associated contracts announced last year.

The Board has

· decided to discontinue its London Exclusive Residential construction activities as the rewards do not meet the division's new bid and risk management policies. The provision reflects the losses incurred year to date and the Board's assessment of the costs to close its West End office and the remaining contracts. There are five larger contracts in this division of which two have achieved practical completion and the remaining three are due to complete within the next six months;

· continued to finalise the closure of its Tonbridge office. This closure has adversely impacted its ability to collect sums due on the remaining projects within this division. A substantial portion of the additional provision announced today reflects a more prudent assessment of the ultimate recoverability of project entitlements. All contractual entitlements continue to be vigorously pursued.





Financial Position

Net cash as at 31 December 2014 was £38m (2013: £33m). The Group continues to trade in line with normal seasonal cash flow trends and within its committed banking facilities which extend to March 2019 and expects to end the year with a similar net cash position as at the end of the first half.

Order Book and Outlook

The Group's order book remains robust at c£1bn as at 31 December 2014. The UK Fit Out and Engineering Services, UK Retail and International divisions are expected to continue to outperform in the second half supported by this robust pipeline and trading in UK Construction is expected to stabilise. With the actions that have been taken the Board anticipates that the Group's growth trajectory will return to the expected levels in 2015/16.

The interim results will be announced on 3 March 2015.

Numis Add 273.50 370.00 335.00 Retains

Re Contract


ISG Secures a Further £148M of European Data Center Projects

ISG continues to build on its significant presence in the international data center market and has been appointed as lead contractor on two data center schemes in Western Europe. The projects have a value of over €200m(approximately £148m).

David Lawther, ISG Chief Executive, said:
"The successful delivery of major data center projects in the UK, Nordics and continental Europe has firmly established ISG as a leading international provider in this technically advanced sector."

Hope you took profit skinny. Chart not looking good. Somewhere around 140p is worst case scenario, imo.

No, still holding a few Harry - I'm not sure I'll still be here at results time though!

Jefferies International Buy 240.00 240.00 410.00 370.00 Reiterates

Half Yearly Report

Group Highlights
· Strong performances from UK Fit Out and Engineering Services, UK Retail and International divisions
· UK Construction division generated a loss of £16.0m as a result of provisions and losses on contracts entered into more than 18 months ago, but now stable with better contracts secured
· Order book in line at £967m (2013: £968m), of which £655m is for delivery in current year (2013: £641m). Since period end £148m of data centers business secured
· Net cash balance of £38.3m at 31 December 2014 (2013: £33.3m)
· Fund raising of £16m undertaken with institutional investors to strengthen equity base
· Interim dividend passed; in the absence of unforeseen circumstances, the Board expects to pay a final dividend of 4.91p (final 2014: 4.91p)

£16 million Fund Raising, up to £3 million Broker Option and short term increase in revolving credit facilities

Introduction

The Company today announces that it has undertaken an equity fund raising (the "Fund Raising") at a price of 170 pence per new ordinary share (the "Fund Raising Price") with institutional investors, raising £16 million (approximately £15 million net of all expenses). The Fund Raising comprises a placing by Numis Securities Limited ("Numis") on behalf of ISG totalling £5.5 million of 3,235,294 new ordinary shares (the "Placing Shares") with institutional shareholders (the "Placing"), and, separately, the Company will issue 6,176,471 new ordinary shares (the "Cathexis Shares") to Cathexis Capital (the "Cathexis Placing") raising £10.5 million. The issue of the Placing Shares and the Cathexis Shares will each be effected by way of separate cashbox placings.

In addition, the Company has granted an option to Numis to issue up to an additional 1,764,706 new ordinary shares at the Fund Raising Price (equal to £3 million in value) for the period from the date of this Announcement to 7.00 p.m. on Monday 9 March 2015 in order to meet any additional demand from other investors including existing shareholders (the "Broker Option").

Did you cash out skinny?

I've had a limit in for a week which wasn't hit - so no.

I'm now 49% up on my original 2012 purchase price - but still smarting.

I would suggest that given the directors had so little visibility over the level of losses it is not clear to me that there won't be further bad news.

I hold no position but am looking for anything in the construction/manufacturing sector which has the potential for good gains and plan to buy on a pull-back on FTSE

Broker Option

ISG announces that, further to the Fund Raising announced on 3 March 2015, Numis Securities Limited ("Numis") has exercised the Broker Option in respect of 544,319 Ordinary Shares (the "Broker Option Shares").

The Broker Option Shares are being issued at a price of 170p per Broker Option Share (being equal to the Fund Raising Price) and will be issued on the same terms and conditions as other Ordinary Shares pursuant to the Fund Raising. All of the proceeds of £0.9 million arising from the issue of the Broker Option Shares will, after deduction of commissions and expenses, be received by the Company.

Application has been made to the London Stock Exchange for the 544,319 Broker Option Shares to be admitted to trading on AIM. Admission of the Broker Option Shares to trading on AIM is expected to take place at 8.00am on Thursday 12 March 2015.

Capitalised terms used in this announcement have the meanings given to them in the announcement of the Fund Raising dated 3 March 2015.

I am not sure why I'm posting this as I'm not going to be purchasing these shares any time soon.

It seems this company operates in the construction sector and specialises in fit outs and data centres. I am struggling to see why the margins in this business would be significantly higher than the rest of the sector as. Times are difficult and it seems the management haven't got a good handle on the construction side.

That being said I am even more puzzled about the recent share placing. Presumably Numis couldn't have just placed the shares with Cathexis, but would first have sounded out a rights issue. I guess it found little support and thus the placement.
After the placement Cathexis continued to pick up shares at around 170p and the price held up. The minute Cathexis reached 25% of the share capital the price has collapsed and RNS this morning shows Investec reducing.

I therefore construe no-one but Cathexis has any faith in the management and will continue selling out. It would be nice to think Cathexis know something we don't but I'm struggling to see what.

I still hold some of these from 122p, having sold half @230p.

Investec still seem to be reducing @3.99% now - I'm too am baffled by the continued weakness and erring more towards selling the rest as opposed to adding again.

Yet again it makes the Jefferies note back in Feb look ridiculous. Broker notes........what a waste of time!

Numis Buy 152.50 - 335.00 Upgrades

What do you reckon, skinny? Starting to look interesting?

I still hold a third of my original number and probably will do for now - look at the chart from May 2013 and ......



RSI turned sharply up and some volume today.

Not tempted to add then, which shows what you really feel!!!
(May 2014.....)