ISG Share Discussion Threads

[dugganjoe] 16/1/2012 07:48

Just read the word "deteriorated" and didnt bother with the rest of the statement
Everything is just cranky it looked so good in november

smash it to 90p?

[skinny] 16/1/2012 07:35

Trading Update - Downturn in retail sector impacts ISG

Interior Services Group ("ISG" or "the Group"), the international construction services company, is today issuing a trading update.

Since our last trading update in November 2011, UK trading conditions have further deteriorated. As a result we have seen a number of our key clients in the UK food retail and retail banking sectors reassess their strategies, which has led to the cancelling or deferring of projects due to be undertaken in the second half of our financial year. With the reduced volumes and continuing pressure on margins, this is likely to result in our UK retail businesses delivering profits GBP3.0m less than we had anticipated.

Our London Fit Out and UK Construction businesses continue to trade in line with our expectations, despite the relentless pressure on margins.

Our Overseas businesses continue to outperform compared to last year as they benefit from our key clients increasing their investment plans overseas.

Trading for the first half of the current financial year is in line with our expectations, but as a consequence of the above, Group profits for the year to 30 June 2012 will now be below expectations.

The Group's financial position remains robust with net cash balances at 31 December 2011 of circa GBP30m (December 2010: GBP37m).

The Group's order book remains in line with our last trading update at GBP700m (December 2010: GBP797m). Over 80% of our profits come from the private sector and the Group provides construction services to an enviable list of international and national clients.

Our ambition to service the UK retail sector remains undiminished. The sector will be an important contributor to the Group's results, albeit at a lower level than over the past few years. The Board remains confident about the long term robustness of the Group's business model and future strategy, and expects to maintain this year's dividend at the level paid last year.

David Lawther, Chief Executive, said:

"While we maintain our market leading positions in UK retail and fit out, we will continue to diversify the Group's earnings base away from the UK and expect our overseas businesses to contribute circa 35% of Group trading operating profits in the current year.

We continue to pursue overseas organic and acquisition opportunities that will provide us with wider service lines, emerging market positions and scale in key developed markets.

Last year we acquired a design & build capability in China and organically started up a retail fit out operation in Europe. The acquisition of Alpha International, a retail design and fit out specialist based in Paris completed in October 2011, has enhanced our organic offering. In addition in this calendar year we are investing in start up operations in Qatar and in Johannesburg to service the Southern African region."

The Group will announce its interim results for the 6 months to 31 December 2011 on 6 March 2012.

16 January 2012

[jeff h] 13/1/2012 15:14

I'm only guessing edmund !! - well with a bit of research thrown in as well

[edmundshaw] 13/1/2012 14:48

Jeff H, The Voice of Reason... :)

[jeff h] 13/1/2012 08:50

Don't know the reason for the recent falls, market sentiment or whatever but with the length and breadth of the company's expertise and markets a reasonable full year result seems likely.

Just look at the variety of recent contract wins:-

(Asda retail £16 million)

(Primark retail £5 million)

(Persimmom housing £5.3 million)

(Govt army £9.7 million)

Maybe this is a buying opportunity, maybe bad news is ahead. I favour the former and have added.

[cnx] 12/1/2012 18:12

L G
thanks your comments and reply, and reminder of ISG last report.
i have enjoyed dividends here for many years but average is nearly 1.90!
i tend to rely a lot on order books, contract wins and outlook statements. so will await next report to see if i can take up some more.

[wessie] 12/1/2012 15:26

140 getting closer!! RSI nearly at zero, must be due a bounce soon - very, very oversold!

[lord gnome] 12/1/2012 12:14

All of my small caps have had a torrid time over the last few months. I have a sneaky feeling that the interims here might not be all that we would want them to be. This snippet is taken from the last announcement:

'As has been well reported in recent months, there has been a slow down in the European economy and we are not immune from this impact. We remain confident of meeting the Board's expectations for the full year in respect of underlying profits, albeit with a further shift in profit weighting towards the second half.'

Pushing forward profit expectations into the second half is tantamount to admitting that interims will disappoint. Hence recent weakness. If there is no disaster awaiting us - and I don't think for one minute that there is, then the chart provides support at 140. I will keep some cash available for a purchase when we get down there, if the next announcement doesn't contain any nasties. The outlook statement and the dividend announcement will give the clues I am looking for.

Hope that's alright with bobby.ifa ;-))

[wessie] 12/1/2012 11:16

140 looks to be the obvious next support, looking to top up but waiting..............

[lord gnome] 12/1/2012 10:11

bobby.ifa - getting worried are we? See you at 140.

[cbgb] 11/1/2012 23:56

The fundamentals aren't a whole lot different than 08 /09 but that didn't stop the share price going to 90p back then. Can't see any compelling reason to add atm. But then, wtf do I know eh bobby.ifa

[lord gnome] 11/1/2012 23:30

cnx - the chart is looking ugly because it shows the share price heading down in a nosedive. I would bet that this is going all the way back to 140.

[cnx] 11/1/2012 19:37

LG
why is the chart looking ugly?
in answering what do the fundamentals of ISG show?

for me this is a volatile market where sound selection of off colour AIM shares are badly hit but offer long term buying opportunities. is ISG one of these?

[lord gnome] 11/1/2012 19:18

Meanwhile, the chart shows a nosedive. That is one heck of an ugly chart.

[santangello] 11/1/2012 17:32

Good spot Skinny......

Sheep selling by the looks......?

[skinny] 11/1/2012 09:06

New 12 month low today - yield approaching 10% (assuming dividend maintained).

[santangello] 09/1/2012 15:44

Looks like an RNS on its way following those 2 x huge buys................

[santangello] 05/1/2012 16:56

.....Added more today.....buy showing as a sell ?????

[santangello] 30/12/2011 18:56

Plenty of buys lately, mine were a few at 162.92p.

Expected drift at present, and a nice time to be adding.

Good spot UK-I, all the best to all holders.

(Hope you are still holding Jeff H).

[ukinvestor220] 30/12/2011 17:52

ISG secures £3.5m Enfield leisure contract

[santangello] 07/12/2011 15:02

Nice 2 x 250k buys gone through...

RNS????

[aleman] 24/11/2011 10:34

THanks for the comments, cerrito. I don't have much truck with institutions views unless they consult the investors whose funds they are managing. I don't know any that do. Certainly mine don't. I'm in the process of emailing my pensions and investment trust managers to see what their policies are on consulting members for voting, guidelines for approving directors remuneration, and lending out stock.