ISG Share Discussion Threads

[its the oxman] 01/12/2015 14:11

Looks to be a disappointment too far for many.

[a2584728] 01/12/2015 12:32

I still believe they have no idea of the liabilities in construction, it's a guess that £5m is worst case.If there are LADs to be measured and set off how can the absolute liability be forecast.The directors are nice people but not in touch with the business at the sharp end and therefore are relying on paid employees or temps to value contracts and costs to complete.I would not invest here until the last contract has been agreed and closed, that includes after the defects liability periods.

[qs99] 01/12/2015 12:18

agreed, and to take their RNS (despite previous disappointments which I get) if they are to complete legacy projects by close of this year then market should IMO focus on 2016 and beyond without (we hope) these construction issues...let's see

[tsmith2] 01/12/2015 12:12

It's already on an a very modest ex-cash multiple...profitable, adding to cash..

[qs99] 01/12/2015 12:06

LGW I think you are being harsh...they state profits will be affected by up to £5m so with net cash of £50m and a profitable rest of business that is a slightly barmy statement to make no? DYOR etc....and IMO....

[lgw500] 01/12/2015 11:47

Total incompetence from this management. They seem nice enough and I have done deals with them in the past. However, it is time for them to decide their destiny: keep their jobs and have a share price south of net cash per share (what security is cash when they don't know how quickly they are burning it?) or fall on their swords and do the decent thing. Am I being too harsh?

[a2584728] 01/12/2015 10:44

I don't think they are actually capable of managing the business and in all honesty it isn't difficult. They need to change.

[salpara111] 01/12/2015 10:12

A very narrow escape for me!
After the last trading update they seemed to suggest that everything was good going forward and I was ready to put a decent chunk of cash into them.
I would agree that management have no credibility now and I would not buy at any price as I simply don't trust them to deliver going forward.

[tsmith2] 01/12/2015 09:46

Feelings like a large sale is being worked through

[jhan66] 01/12/2015 08:55

Lots of debt, negative working capital. Dividend seems a mistake. I suppose they trying to instil confidence on future prospects but looking at recent track record I'm not convinced.

[markie7] 01/12/2015 08:41

Looks oversold here, regardless of the issues that clearly exist. Dividend coming back, no obvious sign of cancellations. Am in at 150.

[edmundshaw] 01/12/2015 08:39

BTW, on the last occasion there were some excuses, as the construction sector was dire for some other firms too (though Interserve, for example, managed to sidestep the problems).

This time they should have been managing the ship tightly, and as they said that legacy issues were in the past, to come out with this statement is beyond incompetence imo.

[a2584728] 01/12/2015 08:32

It amazes me that the directorate did not know prior to this announcement that the losses in construction were there, in their own words all construction issues will be completed by December 2015, surely the previous forecasts made them aware of the losses, were they trying to throw double six or was it pure negligence?

[tsmith2] 01/12/2015 08:30

The balance sheet remains robust and we anticipate a net cash position in excess of GBP50.0m as at 31 December 2015 (2014: GBP38.3m).Massive cash back and growing pile

[tsmith2] 01/12/2015 08:28

Crazy fall based on update..

[edmundshaw] 01/12/2015 08:28

For those thinking this is a bargain, they might like to look at the history of the price and profits warnings last time around... just a year or so ago.

Personally I have been cautious on this one after the last fiasco, taking profits on the way up and not allowing my position to be large. But my very modest loss here is no consolation to anyone (I have lost all my gains); institutions will want blood imo.

Not inclined to wait for a bounce, I have no confidence in top management, who have serially failed to manage the construction division.

[a2584728] 01/12/2015 08:26

I did warn you all, the senior management here have no clue what is happening in their own business, the company needs to appoint some serious Contract Directors/Surveyors, if just one decent sized project fails it could spell disaster for ISGThe data centre works in Scandinavia are not without risk, I have closed my short this morning and will watch from the sidelines, I will not be back in unless there are serious changes.

[mickharkins1] 01/12/2015 08:25

QS99 - the problem is management who are totally incompetent imo.

If you read the final results in September they stated that

"We believe that the poor performance and painful restructuring of the UK Construction division is now behind us, and with the outlook for most of our key markets remaining strong, we expect a much improved overall performance for the Group in the year ahead.".

Three months later they issue another profits warning! Total amateurs.

[qs99] 01/12/2015 08:12

interesting....if most construction legacy projects are done by Dec 15 as they say, then when does market look forward and ignore this side? IR piece now v. important and will be interesting to see if a bounce over course of day or further falls. £50m net cash and £100m market cap, int. divi being proposed....so rest of business moving forward with yield IMO being valued at £50m.....thoughts? DYOR

[nw99] 01/12/2015 08:04

Bargain buying time

[paduardo] 17/11/2015 11:08

I am hoping we will see a lot more of these based on the EU Safe Harbour ruling on personal data.

[nw99] 17/11/2015 07:31

Big news excellent

[edmundshaw] 10/11/2015 18:50

I thought, some kind and thoughtful sellers, because I wanted to add some... of course I COULD be wrong I suppose...