ISG Share Discussion Threads

[elcapital] 18/3/2015 11:16

Does anyone know much about Cathexis.? Looks like they will end up with 29%. Look like an investment advisor

[bouleversee] 13/3/2015 16:51

Thanks for that, DGWinterbottom. I still don't understand the implications, however. In the meantime I topped up this afternoon at 170p. If Cathexis think
it's a good idea to buy £10.5m, my £5k ought to be OK, touch wood. Maybe I'll get back the near 50% I've lost on the ones I bought last year at some point. I presume Cathexis have been adding since the placing. Wonder what their plans are.

[dgwinterbottom] 13/3/2015 16:09

The Fund Raising comprises a placing by Numis Securities Limited ("Numis") on behalf of ISG totalling £5.5 million of 3,235,294 new ordinary shares (the "Placing Shares") with institutional shareholders (the "Placing"), and, separately, the Company will issue 6,176,471 new ordinary shares (the "Cathexis Shares") to Cathexis Capital (the "Cathexis Placing") raising £10.5 million. The issue of the Placing Shares and the Cathexis Shares will each be effected by way of separate cashbox placings.

[bouleversee] 13/3/2015 14:20

Cathexis up to 22.74% now. Who are they and what's afoot?

[edmundshaw] 11/3/2015 11:12

Cathexis LP from From 8.34% to 21.79%.

Not so small!

[approach3] 10/3/2015 16:53

Is a small Director Buy a sign.

[a2584728] 10/3/2015 07:13

Not for me until we see changes in senior roles.

[skinny] 10/3/2015 07:05

ISG announces that, further to the Fund Raising announced on 3 March 2015, Numis Securities Limited ("Numis") has exercised the Broker Option in respect of 544,319 Ordinary Shares (the "Broker Option Shares").

The Broker Option Shares are being issued at a price of 170p per Broker Option Share (being equal to the Fund Raising Price) and will be issued on the same terms and conditions as other Ordinary Shares pursuant to the Fund Raising. All of the proceeds of £0.9 million arising from the issue of the Broker Option Shares will, after deduction of commissions and expenses, be received by the Company.

Application has been made to the London Stock Exchange for the 544,319 Broker Option Shares to be admitted to trading on AIM. Admission of the Broker Option Shares to trading on AIM is expected to take place at 8.00am on Thursday 12 March 2015.

Capitalised terms used in this announcement have the meanings given to them in the announcement of the Fund Raising dated 3 March 2015.

[this_is_me] 03/3/2015 23:06

I'm just glad that I sold my holding just over £3 around a year ago. I have been waiting for the share price to fall to buy back in, but after todays RNS I think that I will give it a miss.

[edmundshaw] 03/3/2015 16:22

One further point: the suggestion in the results that the dividend will be maintained going forward is actually quite bullish, as they will need to pay circa 24% more of their earnings to fund it, given the enlarged share base.

[edmundshaw] 03/3/2015 16:09

FWIW now that we have hit the magic 170p (though it could still go lower), I think the risk is balanced by future returns - as must the institutions buying into the placing (though of course they are also influenced by a wish to rescue their prior holding).

The share price now needs to reflect the larger share issue - a dilution of around 19% - as the rescue is basically paying for the failed contracts and not underpinning any new revenue streams. So a price now of 170p now is equivalent to about 200p in old shares - or a 33% discount a near-high price of 300p (old shares), assuming everything else in the company is going like clockwork.

Given that the rest of the results, which I have now read through in detail, seem good, and noting that new management is in place in the construction division (and perhaps a tad optimistically hoping that the new blood is of sufficient depth and quality) I have decided to make a smallish initial investment here, though I think any rise to £2.50 may take a little time given the small overhang of placing shares. If the share price drops further I shall add a little more.

[nocton] 03/3/2015 14:13

It is not made at all clear how to get the shares in the "Broker Option" at 170p. But since one can currently buy them in the market at below that price I have just exercised my "rights" with a normal purchase. As I think the company has a real future, I just want to maintain my share of the equity that I already have.

[skinny] 03/3/2015 08:28

Yes Apologies, I didn't see that bit of your post originally.

The same Numis who had a 335p Tp a month ago on the day of the update!

[edmundshaw] 03/3/2015 08:24

Yes, Skinny. That is what I meant by "the additional placing shares notwithstanding" - sorry if that was unclear. But it is a small added tranche - perhaps enough as there may not be a huge demand...

Well, on the bright side, I did not go short, so I have not added to your pain.

[a2584728] 03/3/2015 08:23

The issue I have is as follows, why the hell did the senior management have no idea about the loss making contracts, they must have a monthly financial health check on every project, in which case it was hidden by someone.Now we are expected to trust the same people going forward who will be dealing with more contracts than before????Someone has to pay the price.

[a2584728] 03/3/2015 08:20

So the recent rise was purely to get the price up for the fund raising.

[skinny] 03/3/2015 08:14

Edmund, from the second RNS :-

"In addition, the Company has granted an option to Numis to issue up to an additional 1,764,706 new ordinary shares at the Fund Raising Price (equal to £3 million in value) for the period from the date of this Announcement to 7.00 p.m. on Monday 9 March 2015 in order to meet any additional demand from other investors including existing shareholders (the "Broker Option")."

But feeling woefully let down (again).

[edmundshaw] 03/3/2015 08:09

As expected, the price is down again on the actual results.

I was very disappointed to see no-one has fallen on his sword. All those bum contracts just bad luck, then, eh? :-(

Placing at 170p not a public offer, so a cheap price for a few selected institutions. Normally I would say that is pretty unfair to public shareholders (the additional placing shares notwithstanding), but they were in a tight spot, and in a hurry, so there is some excuse. Also, It would not surprise me for the share price to hit 170p now anyway...

Long term the business health remains to be seen, in spite of reassurances. But I am not comforted by the lack of anyone carrying the can.

[a2584728] 03/3/2015 07:48

I wonder if they will use the cash to pay the suffering supply chain?

[skinny] 03/3/2015 07:10

Introduction

The Company today announces that it has undertaken an equity fund raising (the "Fund Raising") at a price of 170 pence per new ordinary share (the "Fund Raising Price") with institutional investors, raising £16 million (approximately £15 million net of all expenses). The Fund Raising comprises a placing by Numis Securities Limited ("Numis") on behalf of ISG totalling £5.5 million of 3,235,294 new ordinary shares (the "Placing Shares") with institutional shareholders (the "Placing"), and, separately, the Company will issue 6,176,471 new ordinary shares (the "Cathexis Shares") to Cathexis Capital (the "Cathexis Placing") raising £10.5 million. The issue of the Placing Shares and the Cathexis Shares will each be effected by way of separate cashbox placings.

In addition, the Company has granted an option to Numis to issue up to an additional 1,764,706 new ordinary shares at the Fund Raising Price (equal to £3 million in value) for the period from the date of this Announcement to 7.00 p.m. on Monday 9 March 2015 in order to meet any additional demand from other investors including existing shareholders (the "Broker Option").

[skinny] 03/3/2015 07:05

Group Highlights
· Strong performances from UK Fit Out and Engineering Services, UK Retail and International divisions
· UK Construction division generated a loss of £16.0m as a result of provisions and losses on contracts entered into more than 18 months ago, but now stable with better contracts secured
· Order book in line at £967m (2013: £968m), of which £655m is for delivery in current year (2013: £641m). Since period end £148m of data centers business secured
· Net cash balance of £38.3m at 31 December 2014 (2013: £33.3m)
· Fund raising of £16m undertaken with institutional investors to strengthen equity base
· Interim dividend passed; in the absence of unforeseen circumstances, the Board expects to pay a final dividend of 4.91p (final 2014: 4.91p)

[skinny] 24/2/2015 06:57

Jefferies International Buy 240.00 240.00 410.00 370.00 Reiterates

[a2584728] 18/2/2015 10:40

Indeed good luck to all investors.

[dgwinterbottom] 18/2/2015 10:38

Notwithstanding the profit warning there seems to be significant interest in the shares!!!!!!!!!