ISG.L Regulatory News (ISG)

23 Jun 2005 07:00

Interior Services Group PLC23 June 2005 INTERIOR SERVICES GROUP PLC Trading Update Interior Services Group plc ("ISG") the construction services specialist, istoday updating investors on trading prior to its close period ahead ofannouncing its results for the year ended 30 June 2005. "After the challenging trading conditions of the first half of the financialyear, the Group is pleased to report that the market for its specialist serviceshas improved in the second half. This improving market is contributing to a realrecovery in the levels of profitability, with current trading in line withmarket expectations. The Group has continued to be awarded an encouraging numberof new projects both in its core market of central London and in the regions.Recent major fit out project wins include an assignment for Dresdner KleinwortWasserstein at its new City of London head office, and a follow up project forUBS. In the education sector, ISG has been appointed to manage the building ofthe new Knights Academy for Haberdashers Aske. Our order book for all years has continued to increase further to over £600m atend May 2005, up over 63% compared to the same time last year. Of this, over£430m is secured for 05/06, up from £250m at the same time last year. The Fitout market for larger projects has also started to recover and consequently thelevel of Fit out activity will significantly increase in 05/06. It is the group's policy to settle accounts on projects amicably and quicklyafter completion. However on two projects, which were carried out earlier in2004, this has not been possible and they are now the subject of adjudications.The Group and its advisors are confident of the strength of its position and donot expect to need to make provision for the outcome of these adjudications.These outcomes are likely to be known by the time of our preliminaryannouncement in September 2005. Looking forward, the outlook for the Group in 05/06 is very encouraging, withthe core office fit out market in London well into a phase of recovery, and withthe benefit of a record order book." David King, Chief Executive of ISG commented, " The current market conditions are extremely encouraging for the Group. Theorder book is at record levels and I am delighted with the Group's ability tosecure new projects with major clients both in London and in the regions.Although the current adjudications are disappointing, we are confident ofsecuring a positive outcome. We are excellently placed to benefit as the market continues its recovery in 05/06 and believe the Group can approach the coming twelve months with renewedconfidence." - ends -Date: 23 June 2005 For further information contact: Interior Services Group PLCDavid King, Chief Executive 020 7392 5251David Lawther, Group Financial Director 020 7392 5307Web: www.isgplc.com City ProfileOliver Winters 020 7448 3244 This information is provided by RNS The company news service from the London Stock Exchange