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.

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.....)

I'm as exposed as I want to be - generally that is, atm, but certainly now not looking to sell.

Upgrade to 335. Methinks Cathexis might have placed some pressure on Numis.

StockMarketWire.com
ISG has been awarded in excess of £80m of additional data centre works in the UK and Continental Europe from existing customers.

This has resulted in the group's order book increasing to a record £1.1bn as at March 2015 (March 2014: £1.0bn).

Chief executive David Lawther said: "We are delighted that our order book continues to remain strong. Our technical expertise and international capability continue to prove decisive factors for customers entrusting ISG with business critical projects."

Ironically, I sold the last of my holding yesterday!

So you are not expecting a recovery in the sp any time soon then?

I've been doing some pre-election trimming and ISG fell into that category.

As I've posted before, they have been good to me over the years, and I will probably buy them back again - just unfortunate timing with the sale - as ever! :-(

Just that I was thinking that another lurch down to 140p level and I might be tempted to buy a wad in anticipation of a recovery. Might take a while, but ......
Sorry you were pushed into selling near the bottom. I am expectig DC to get back in, with assistance, so not too much rejigging needed, imo.

It was more of a pragmatic decision rather than being pushed - I also sold LSR - you may want to look at those if I have the same effect!

Trading Update

£80m Office Fit Out Projects

Final Results

Numis Buy 173.00 335.00 335.00 Reiterates

Anyone know the reason for this drop in SP?

Probably a disappointing trading update!