ISG Share Discussion Threads

[a2584728] 17/2/2015 14:15

there is a train of thought that profit warnings come in 3's, i shall be staying out for the short term to see what action is taken and what the next few RNS's hold

[edmundshaw] 17/2/2015 11:24

A bounce.

Nice contract but I don't really buy that investors have quite understood the gravity of that profit warning... unless they have a very long view.

[a2584728] 16/2/2015 13:02

Mmmm needs a clear out, they were all unaware of what was happening in their business. Unforgivable and I suspect the major share holders are going nuts.

[edmundshaw] 16/2/2015 11:51

Actually quite shocking to see this huge mess coming out of the blue after the in-line AGM statement as recently as December.

I quote (AGM statement): "Our focus on key market leading positions and our diversification strategy have resulted in the Group's most secure trading base in its 25-year life."

Wow.

[edmundshaw] 16/2/2015 11:47

I am interested in reinvesting here at the right time, so taking an interest. But...

£7m onerous contract losses in the building division +
£6m discontinuation cost for London Exclusive Residential (talk about bad timing just as the market is turning in London)
£11m of losses and provisions against office closure.

Add that up it comes to £24m.

Last year's profit BEFORE TAX was £6.8m. Underlying was £11.8 BEFORE TAX.

OK underlying discounts amortization of intangibles of around £2m. But the other bits could arise any year - restructuring costs, acquisition expenses etc. Something in these categories is inevitable for this year, so I'd adjust PBT to around £9m as an estimate for an ongoing, sustainable basis. Maybe £7.4m after tax?

Compare £7.5 with £24m and there is a big loss coming up that is going to eat into that pre-payment cash buffer. Scary if there is a downturn, as they might need support from banks at an awkward time.

Hm. I think I shall wait on this one. Probably wait until we see some board changes on top of good signs of business stabilisation. Shame, as this is a good underlying business. :-(

[a2584728] 16/2/2015 10:55

I am selling my holding, have no faith in senior management, who knows what other losses in the company are there and not known about.Needs a clean sweep of the senior commercial men who didn't see the previous losses early enough.

[pugugly] 16/2/2015 09:41

New contract and ther share price falls - Interesting - Has the company again low balled the bid and with the fall in the € aagainst the £ the institutions are continuing to sell down on the assumption it may not be profitable AND/OR more news leaking on possible extra losses on the constructionside.

Interesting but the continuous drop in the share price suggests significanly further to fall.

[skinny] 16/2/2015 07:07

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."

[a2584728] 12/2/2015 15:02

Too many intangible assets IMHO.

[edmundshaw] 12/2/2015 13:16

I notice that net cash was £46.3m at the year end, and is now £38m. Whether that is due in full or in part to the onerous construction project(s) is unclear to me, may be just working capital movements.

Important to realise that cash is prepayments for work, so although it means the company does not need to clock up debt, it is wrong to think this means the balance sheet is simply stuffed with cash: in fact ththe net tangible asset position is negative, as it has been for years I believe.

Total net assets at the last finals were £57m, but this includes intangible assets of £86m, including £83m of goodwill.

[a2584728] 12/2/2015 13:03

Falling knife anyone? There will be more loses to announce I suspect, all IMHO of course

[poikka] 07/2/2015 16:51

Talk about kitchen-sinking!!

For 2016, Numis are going for PTP £18m, EPS 33.6, Divi 10.5 - @ 232p, that's a P/E 7, Yield of 4.5%; so probably about right pending the Finals announcement.

Thing is, they're (allegedly) looking at improved margins. They have £38m cash, which taken off the MCap of some £90m leaves £52m - only 3 times the PTP.... Hmmm.

[killieboy] 03/2/2015 18:37

Have been holding these for ages averaging £1.56 so still in profit but beginning to lose confidence in management but............ to sell or not to sell before results!?!

[apfindley] 03/2/2015 15:55

OXS firing up now on L2News leaking of arbitration award?$440m-$1.2bn

[edmundshaw] 03/2/2015 13:44

Hm, I was opining that the share price would take another hit on the detail of the bad news at results. But I was not expecting such a sharp initial correction. Now I am not so sure...

Still watching. I used to own this and am getting itchy fingers around the buy button... but falling knife and all that, I think I will sit on the proverbial front paws a little longer.

[ridicule] 03/2/2015 12:01

Thanks Skinny. Obvious when you spell it out. I top sliced half of my holdings last week at 3.53 but still have a sizeable chunk left. I did not sell at the 2.80 mark yesterday based on the £7m shortfall that was stated.

If one takes the 39.22m shares in issue, then the £7m loss referred to equals circa 18p per share. The rest of the fall (£1.07) as I write is down to sentiment and newly introduced uncertainty. This seems overdone. On this basis I intend to hold my remainder, even with the risk of a dividend miss next time around.

Looking at their data centre performance, this share should recover on a two year view and it could be much sooner than that. Recovery is worth waiting for in my opinion, given the loss I would realise if I sold now, and their data centre growth has lead to a record £1bn order book.

I will not top up ahead of the results however.

[nocton] 03/2/2015 11:56

Unless there is something really fishy going on, this price fall is completely overdone. As a long-time holder having bought at lower prices, I am happy to hold for the return to normal operations.

[pugugly] 03/2/2015 10:13

Bounce starting ?? Dead cat - or new base ?? Not confident enough to gamble especially so near the election -

[fillipe] 03/2/2015 09:44

bid is down to 221p, all on v small.

f

[lauders] 03/2/2015 06:48

Feel for holders! Glad I decided to exit a while back, so at least got one right. Lost on many others though and so you are not alone! Can only see this going down more for a while. Good luck if you decide to hang on!

[skinny] 03/2/2015 06:38

Current Price, Old Target price, New target price.

[ridicule] 02/2/2015 23:43

Skinny Could you explain the 3 Numis figures please?

[a2584728] 02/2/2015 19:58

Credibility of senior management has gone down the pan, they should have known about this months ago.

[skinny] 02/2/2015 14:04

Numis Add 273.50 370.00 335.00 Retains