ISG.L Regulatory News (ISG)

1 Oct 2007 07:01

Interior Services Group PLC01 October 2007 ISG CONTINUES GROWTH STRATEGY WITH EUROPEAN ACQUISITION Interior Services Group plc ("ISG"), the construction services specialist, todayannounces the completion of the acquisition of Interior Alpha SA and itssubsidiaries ("IASA"), in which it formerly had a 20% shareholding. The totalconsideration is £13.5m of which £2.2m is deferred and subject to the businesshitting certain profit targets. The initial consideration is to be settled bythe issuance of 563,456 ISG shares and the payment of cash of £9.6m, which is tobe funded by a 6 year term bank loan. IASA is a specialist business that offers commercial office, hotel, leisure andretail fit out services across Europe. IASA has offices in three major Europeancities - Paris, Milan and Frankfurt. Over the last twelve months, IASA has alsoserviced clients in Amsterdam, Copenhagen, Geneva, Zurich, Luxembourg andBarcelona. Clients include major banks and multinational firms such as Royal Bank ofScotland, Fidelity, ExxonMobile, Credit Suisse, Google, Adobe and RightManagement. In the year ended 30 June 2007, IASA reported an audited profit before tax of£3.5m on a turnover of £22.4m. These results included a number of exceptionalitems and as such we would anticipate the business achieving a more normalisedlevel of profit margin of circa 10% in future years. At the date of completion,IASA has estimated net assets of £2.2m with an estimated cash balance of £4.0m,and work to date secured for the year of £19m. Senior management has agreed tostay on with the business following the completion of the acquisition. David Lawther, Chief Executive of ISG commented, " We are delighted to announce this acquisition. IASA has grown significantlyover the last few years enjoying an excellent reputation with its blue-chipclient base and continued growing demand for its services. Strategicallytogether with the Group's existing UK and Asian operations it strengthens andwidens the Group's geographical offering to our global commercial and retailcustomers." "The Group continues to trade in line with our expectations. Currently worksecured for the year ended June 2008 stands at 88% of the Group's target. Welook to the future with confidence and enthusiasm." - ends - Date: 1 October 2007For further information please contact: Interior Services Group PLC David Lawther, Chief Executive 020 7392 5307Jonathan Houlton, Group Finance Director 020 7392 4905Web: www.isgplc.com cityPROFILEWilliam Attwell 020 7448 3244 This information is provided by RNS The company news service from the London Stock Exchange