Interior Services will continue to develop its overseas operations to help offset the tough trading climate in the UK, according to chief executive David Lawther. Profits were lower in the first half mainly as a result of difficult conditions in UK construction, where operating profits fell from £2m to just £0.1m.
There was also pressure on the UK food retail fit out operation, with many customers cutting back or delaying expenditure programmes, and operating profits slipped from £2.3m to £1.3m. However, this was offset to some extent by a strong performance outside the UK, and overseas profits grew from 6 per cent to 27 per cent of group trading profits. Fit out in mainland Europe saw turnover up 28 per cent at £53m, helped by the acquisition of French retail design and fit-out specialist Alpha in October. Similar progress was seen in Asia, where turnover rose 45 per cent to £47m, although the Middle East operation registered a small loss as a result of completion delays in Abu Dhabi.
The group's overall order book is up from last year at £841m, but broker Numis nevertheless expects lower full-year pre-tax profits of £8m and EPS of 18.4p (from £11.5m and 27.1p in 2011).
| INTERIOR SERVICES GROUP (ISG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 124p | MARKET VALUE: | £41.4m | |
| TOUCH: | 123-125p | 12-MONTH HIGH: | 205p | LOW: 114p |
| DIVIDEND YIELD: | 12.1% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 163p* | NET CASH: | £29.5m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 635 | 4.49 | 9.49 | 4.41 |
| 2011 | 629 | 1.84 | 8.14 | 4.41 |
| % change | -1 | -59 | -14 | - |
Ex-div: 14 Mar Payment: 1 May *Includes intangible assets of £95.3m, or 285p a share | ||||
