ISG Share Discussion Threads

[this_is_me] 11/3/2013 14:06

That is a now a clear one year high.

[skinny] 11/3/2013 13:20

Another excellent day and spike just before midday.

[skinny] 08/3/2013 16:26

Interesting on @£80k of trades.

[this_is_me] 08/3/2013 15:04

The spread isn't that bad for this rype of company; only a problem for day traders not long term investors.

Nice jump today.

[tommyjnewton] 06/3/2013 10:35

Quite remarkable that a company with 1.2 billion in turnover could have this nasty spread which puts off trade so effectively. The other remarkable thing being the low profit margins of course.

[welsheagle] 05/3/2013 20:11

Two brokers recommending 'Buy' today

[edmundshaw] 05/3/2013 18:15

Looks like we shall have to wait a year for an upturn in profitability. Meanwhile, looks pretty steady - some ups, some downs:

(UK Fit Out) At 31 December 2012, our UK Fit Out division's order book increased to £170m (2011: £93m)... We anticipate that revenue for the current financial year will be substantially ahead of prior year.

(UK Retail) maintained its positions on the frameworks for Tesco, Sainsbury's, Morrisons, Asda, Marks & Spencer and Waitrose. However, the trend towards new-build "mega stores" is now over and the emphasis is on the refresh of existing stores and an increase in convenience stores, resulting in lower revenues in the period

...increased the number of repeat customers we are working with...

...we expect revenue for the current financial year will be lower than the prior year, although with a larger volume of smaller projects we anticipate that margins should be higher... [that surprised me]

(Continental Europe:) expected to be similar

(MEA:) increased order book of £20m (2011: £10m) supports a rising revenue trend that should be realised in the second half.

(Asia:) slightly ahead...

(UK Construction:) revenue in the current financial year will be lower than prior year, with margins continuing to be under pressure.

OUTLOOK: ...remain confident of meeting the Board's expectations for the full year.

[this_is_me] 05/3/2013 14:27

I suspect that most of the contracts are cost plus otherwise the margins would not be so consistant.

[dgwinterbottom] 05/3/2013 13:49

Why does this kind of work have historically low margins, looking back over the last ferw years never seems to get above 2% or so

[edmundshaw] 05/3/2013 13:23

TJN, likewise, though the recent gossip on the datacentre would not impact the first half; but looks like the second half is going well, and a good order book (albeit margins probably still a bit tight).

More foreign turnover should be good for margins too.

On the datacentre stuff. It is a bit away from their past expertise, so I hope they have got the right personnel on that, as it is not a matter of just joining up boxes and making it look pretty. But I imagine if they did get it wrong or fell out with a partner they will make the necessary changes quickly. Not just joining up boxes with fibre, but it is not rocket science either. Past performance makes me thik they will get it right. All just gossip anyway...

[this_is_me] 05/3/2013 11:28

A good long term investment at the current share price whatever minor change in the dividend, if any, is proposed.


edmundshaw
, do let us know if you are correct after you have asked the question.

[tommyjnewton] 05/3/2013 09:43

Results are a lovely relief as I had the jitters rather like Lord Gnome. However, I was unable to sell my holding (fortunately).
Should make its way up to 150p in the next couple of months. Why not?

[edmundshaw] 05/3/2013 09:18

So you seriously think they are planning to cut the final dividend from 4.59p to 4.41p? Hm, I don't think the FD would think much of that question...

[this_is_me] 05/3/2013 09:07

You should contact the FD and ash him to explain exactly what it means.

[skinny] 05/3/2013 08:56

Panmure Gordon Buy 139.50 137.50 170.00 170.00 Retains

[edmundshaw] 05/3/2013 08:47

With last year's dividend at 4.59p that is just stating that the dividend is not going back up to where it was before (with the final at 10p or so).

So I am still expecting 9p or perhaps a tad more for the full year.

[this_is_me] 05/3/2013 08:24

Dividends

The Board has declared a maintained interim dividend of 4.41p (2011: 4.41p) with the intention that, for the time being, the split between the interim and final dividends will be more closely aligned than previous periods

[edmundshaw] 05/3/2013 07:50

Why would they reduce the dividend? Earnings and order book are up.

[this_is_me] 05/3/2013 07:39

Still a well run company diong well in present circumstances. The final dividend could be reduced to the same size as the interim one.

[lord gnome] 05/3/2013 07:10

No nasties lurking there then. All seems to be 'steady as she goes'. Clearly, my sell was unnecessary. Ho hum, other fish to fry. Good luck to all holders.

[skinny] 05/3/2013 07:03

Group Highlights

· Performing well in core retail and corporate office markets despite difficult UK economic conditions
· Developing our presence in engineering services and hospitality sectors
· Growing reputation and traction in our overseas businesses
· Continuing revenue stream from London 2012 Olympics
· Net cash balance of £25.3m at 31 December 2012 (30 June 2012: £25.4m), with banking facilities renewed until September 2015
· Order book ahead by 9% at £766m (2011: £704m), of which £512m is for delivery in current year, with private sector bias of 80% (2011: 77%)
· Interim dividend maintained at 4.41p per share

Divisional Highlights

UK Fit Out

· Operating profit of £2.0m (2011: £2.3m) on revenue of £119m (2011: £92m)
· London office fit out market remains competitive, with project sizes smaller, but larger scale projects beginning to re-emerge
· Increased revenue from growing engineering services market
· Order book up 83% to £170m (2011: £93m)

UK Retail

· Operating profit, as anticipated, decreased to £2.6m (2011: £3.0m), on reduced revenue of £164m
· Business has maintained its market leading position and margins are stable
· Substantial work under frameworks carried out for the leading major UK supermarket and retail banking brands
· Order book lower at £102m (2011: £148m) reflecting decrease in investment in new build projects by retail customers

Continental Europe

· Operating profit of £1.1m (2011: £1.3m) on revenue of £51m (2011: £53m)
· Office fit out business saw France and Germany performing well, but Italy weaker
· Retail fit out business continuing to grow, working for several repeat customers
· Order book lower at £26m (2011: £49m); since period end awarded £15m of projects

Middle East and Africa

· Later project starts have again impacted the first half results
· New office in Johannesburg opened
· Order book up 100% from prior year to £20m supports a stronger second half

Asia

· Operating profit maintained at £0.7m (2011: £0.7m) reflecting higher margins despite lower revenue of £35m (2011: £47m)
· North Asia driven by strong retail, hospitality and leisure sectors
· South East Asia, successfully diversified into hospitality and leisure sector
· Continue to invest for growth in our consulting businesses
· Order book higher at £39m (2011: £27m) supporting stronger second half activity in South East Asia


UK Construction

· Revenue increased by 18% to £280m (2011: £237m) on the back of London 2012 Games overlay works contract, generating an operating profit of £0.7m
· Strategic focus is on repeat customers and frameworks
· Market conditions remain challenging - in process of reorganising UK East region
· Order book increased to £409m (2011: £377m) and now weighted 65% towards private sector (2011: 58%)

[edmundshaw] 03/3/2013 14:25

Prelims Tuesday. Nervous. Do not blame his lordship...

[lord gnome] 28/2/2013 08:25

I'm out. I have finally lanced this boil. In at 195 with high hopes and a good yield, but took a stonking loss on these. I was hoping to get my money back as the economy recovered, but I think we could be in a for a long wait and I have other fish to fry. Good luck to all that remain.

[lord gnome] 28/2/2013 07:37

That doesn't sound good Jeff H. I wonder what was behind that. It's what the press story doesn't say that makes it interesting.