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.

Nah ... about 220p by November :-)

My views FWIW - not a holder. Business is profitable and like any good contractor does not need to borrow. Net cash represents over 50% of market cap. Gross margins on last figures however are thin at just over 5% and operating profit margins not much over 1%, so not a lot of room for error. My favourite contractor is the much larger KIE, although currently not in that either, which had gross margin of around 9% and operating profit approx 2.5% on latest figures. Not directly comparable as KIE also has a housebuilding arm, but it would be my preference. Will watch ISG as not without speculative attractions and imo better chance than most on these boards.

Ticking up.

I like the look of this too ,good fundies and the divi..

Ticking up again.

Nice gap to fill at 175-185p.

Breaking out , next stop 200p ,

Yup finally moving..

Target upped , 260p by xmas :-)

1p a day and we should just manage it in the given time frame.

Anyone else in ?

Just me then , looks ready for next step up but what would I know.

I've been dithering with this one and can't think why! Seems pretty sound to me.

Know how you feel , almost bought some more on last weeks pull back and bottled it.

I know how you feel i sold ,for a profit i might add .
Kim stop dithering !!

Edit ,i see its up 9p dam...another pullback i may be back in, ,,,good call Dil

I did stop dithering Jimmy, but just as I was about to press the buy button, switched to KDD which I thought showed more short term promise! Hmm, remains to be seen if I was right, so far so good but as soon as able, I am determined to pop some of the profit (if any by the time I come to offload some KDD!) in to this one 'cos I like it!!

I dithered and sold :-(

Tut, tut! ;o)

Nice results , onwards and upwards.

Yep, increased divi too. Not bad at all!

Oooooo 200p by Friday :-)

What's wrong with tomorrow and Thursday then?! ;o)