Investor KT
14 Sep 2015
WHY THE PRICE JUMP? HiAnyone know the reason for price jump today? The Numis and Jefferies views announced today don't seem to explain the rise.Many thanks.
Courtier1
11 Sep 2015
Re: Results you need to look a bit closer at the company. Basically it is all about contracts now fully completed that were taken on during recession with poor margins. These are now gone and the company has confirmed that the new ones are being done at significantly better margins and profitable. This is only in the construction division mind. The fit-out division increased EBIT by 67%The placing in H1 was clearly flagged as a requirement for cash to mop up the legacy construction issues and restructure the business so no surprises there either. Of discontinued business there was a £3m+ cash outflowThe underlying earnings of 10p strips out discontinued business but does not exclude the losses from the construction contracts mentioned above. The construction part was the lions share of the losses.You said "they need to prove they are out of the woods" - that is the point of looking at H2 vs H1 - this is not a seasonal business. You can clearly see that H1 was a loss of £7m and H2 is a profit of £14m and order book is 14% higher than last year at increased margins (i.e. more profit).I have never held before so have no historical bias but went long at 180p. Strikes me that this year the company is guiding towards 27-30p eps and being cash generative. The fact that they have 65% of revenue visibility already under contract is why I broadly believe the numbers. I give myself a downside margin of error of 25% but at 20p eps the share price still looks reasonably attractive. Personally I expect them to make 30p+ but we will see.
LoadsaDosh2
10 Sep 2015
Re: Results The way I read it, they had £16m cash in March but it has only resulted in YE improvement in cash of £6m. Where has the £10m gone? Is it cash burn?The underlying eanings of 10p are from 'continuing operations' and already excludes the exceptional losses; so sorry PE is 18 currently unless they can turn this around. Its easy to make optimistic noises and more welcome than not but they still have to prove they are out of the woods.
Courtier1
10 Sep 2015
Re: Results I think you are somewhat missing the fundamental takeaways from the results. You shouldn't apply a historic PE ratio to a business that has discontinued part of its business during the 1st half of the year.The £7m loss in the 1st half accompanied by a placing to strengthen working capital on the balance sheet was replaced by £14m profit in the 2nd half. Management also clearly state that the contracts that were taken on during the recession that created these losses have now been completed.so how does the business look. Well the order book is up 7%, margins in the contraction division have been improved and analysts expect this years earnings to be somewhere in the 27-30p range with potential for upgrades and a 5.5% yield. That puts the stock on a PE of 6-7 at the current price. Order book at 1.1bn+ means visibility over around 65% of this years earnings, which is also good and cash generation expected to improve markedly.whether that means the stock is now fairly valued or significantly undervalued is ones own judgement call - for what it is worth the analysts think 300-330p is around fair value.
LoadsaDosh2
09 Sep 2015
Re: Results Net cash balance improved by £6.4m however they had £16m extra cash from the placing in March! Underlying earnings 10.4p so PE is around 18 assuming no more bad debt.hmm think its fairly valued for now.
mantrova
09 Sep 2015
Re: Target price - 335p Today - Jefferies Int - tp 330pm
spankaroo
09 Sep 2015
Re: Target price - 335p If it's past problems in its construction division are over, which looks the case, looking forward to current years EPS consensus forecast of 27p it looks very cheap indeed on a PE of 5.7x
mantrova
08 Sep 2015
Target price - 335p All now looking good to me at ISG.Numis today - reiterates BUY and a 335p tp.Luvving it.m
Lupo di mare
08 Sep 2015
Re: Results I'll get it right in a minute!!
Lupo di mare
08 Sep 2015
Re: Results Correction - Buy.
Lupo di mare
08 Sep 2015
Results Looks like they've had to add another £4m or so of provisions since the July Update. Other than that all looks ok. Just hope that that really is the end of the provisions; although I'd put money on it not being the end, albeit much reduced - I hope.
II Editor
14 Jul 2015
NEW ARTICLE: ISG looks dirt cheap "Five months after a savage profits warning then dire set of half-year results just four weeks later, builder and office fit-out firm LSE:ISG:ISG has reassured shareholders that full-year results will be no worse than heavily-downgraded forecasts. ..."[link]
Green300
12 Jun 2015
Re: New Directors Decent rise in past few weeks, up from 140ish to 175ish, but I guess that for many is just a partial recovery of previous losses. I think the market is really just waiting for a trading update I.e. Details on actual performance.Seems to me this is all about whether previous provisions were enough and whether there are more contract overruns in the UK construction division (or elsewhere). A solid announcement with decent results across all segments is what we need for reassurance. Confirmation of the return of the dividend is also significant to me, as would be revenue growth and strong pipeline, but for me this is mainly about bottom line growth.Should get an update on 30 June or thereabouts (pre close) and a further update at start of September. So I think we could see some more decent progress, if the results are good, over the summer. If the results are bad, then I would expect sub 150 again.Fingers crossed!
Lupo di mare
11 May 2015
New Directors Their appointments went down well... Did someone find their appointments a negative? Not really likely. Odd, to me anyway.
Lupo di mare
01 May 2015
Re: My price target here is 175p LG says "BANG ON" and Buy @ 175p. I've been buying @155; does that make me a better trader than LG?
