6th Mar 2007 07:26
Interior Services Group PLC06 March 2007 ISG CONFIDENT AS ORDER BOOK GROWS TO £845 MILLION Interior Services Group plc, ("ISG") the construction services specialist, hastoday announced its interim results for the six months to 31 December 2006. Financial Highlights 6 months 6 months ended ended 31 December 31 December 2006 2005 • Profit before tax (before goodwill) £4.2m £3.6m • Profit before tax £3.1m £3.1m • Fee income £48m £36m • Gross value of work performed £411m £326m • Adjusted earnings per share (before goodwill) 11.07p 9.34p • Basic earnings per share 7.36p 7.48p • Interim dividend 3.30p 3.00p • Net cash £24.4m £21.4m • Order book £845m £778m David Lawther, Chief Executive of ISG, commented, " We are delighted that the business is making excellent progress. Our core fitout markets remain very active in the banking and financial sector. Propertyowners are continuing to commit to major new office schemes. The pipeline forboth large and mid-size projects is good. We have won a number of significantnew assignments including schemes for the new Eurostar Terminal, StandardChartered Bank, Nomura, Scottish Widows and Ascot Racecourse. Our regional businesses are performing well and are reporting encouraging orderbooks. Particularly encouraging is the performance of ISG Dean & Bowes, ourretail fit out business, which is ahead of our expectations. Looking furtherafield, we have now completed the acquisition of our Asian business ISG Asia,significantly increasing our exposure to these growth markets. Looking to the future, we are confident that we will maintain our positivemomentum. We have created a very solid platform from which we can achieve furthersignificant growth. We have a record order book and we expect volumes acrossour range of operations to continue to grow. " - ends - Date: 06 March 2007For further information please contact: Interior Services Group PLCDavid Lawther, Chief Executive 020 7392 5307Jonathan Houlton, Group Financial Director 020 7392 4905Web: www.isgplc.com cityPROFILESimon Courtenay 020 7448 3244William Attwell 020 7448 3244 CEO HALF YEAR STATEMENT The strong improvement in trading witnessed in the second half of the last financial year has continued with profit before tax and goodwill in the firsthalf to 31 December 2006 increasing to £4.2m (2005: £3.6m). Included in theseresults is the exceptional cost of integrating ISG Totty of £0.5m. As a result of this performance, the interim dividend is being increased by 10%to 3.30p and will be paid on 17 April 2007 to shareholders on the register on 16March 2007. This profit improvement was achieved on volumes of £411m (2005: £326m), up 26%,and fee income increased to £48.1m (2005: £35.7m), up 35%. Operating cash flowremained strong with a net cash inflow of £4.6m (2005: £5.2m), resulting in netcash of £24.4m (2005: £21.4m). The adjusted earnings per share (before goodwill)for the period increased by 19% to 11.07p. Strategic Developments In the last six months our priorities have been: • Growth in our overseas operations On 30 October 2006 we acquired 100% of the trading operations of ISG Asia Limited, an entity in which we had held a 22% minority shareholder stake since 01 July 2003. The business, which is branded ISG Asia, employs 350 people. It provides a range of services that includes project management, construction fit out and facilities management to commercial office, hotel, leisure and retail customers through a network of offices in eight cities - Singapore, Hong Kong, Tokyo, Kuala Lumpur, Shanghai, Macau, Seoul and Dubai. Activity levels for the six-month period to 31 December 2006 for ISG Asia are over 100% up on the corresponding prior year period, with turnover for the period of S$107m (£36m). The group results include the two-month operating profit contribution before goodwill of £0.1m, and a profit on disposal of our 22% shareholding interest of £0.1m. We are seeking to further increase our exposure to the high growth Asian markets, and have identified one opportunity where we are now in detailed discussion. • Undertake the reorganisation of ISG Totty thereby concluding our integration of the Propencity Group As reported in last year's Report and Accounts, ISG Totty has been undergoing a process of integration. With the running down of its Accommodation Division, ISG Totty has been re-focusing on offering its traditional core business of new build and refurbishment services to the public and commercial sectors. The cost of this exercise, £0.5m, has been incurred in the first half. The reorganisation has taken longer than initially anticipated resulting additionally in a first half trading loss of £0.7m. However, with a re-built pipeline of opportunities and a current order book of £51m, it is envisaged that the business will make a positive contribution to the group results in the second half. • Take advantage of market conditions to deliver organic growth Organic growth in London during the first half has focused on the continuing development of fit out teams to tackle projects in the range of £1m - £5m. The teams are exceeding our expectations and we will continue to develop resources in this sector of the market. In the medium term it will not only produce growth but also improve our resilience to fluctuations in the large scale fit out market. • Retail Fit Out Acquisition We have been particularly encouraged by the acquisition of ISG Dean and Bowes which has performed ahead of expectations, and as a result we have been looking for acquisition opportunities in this higher margin area. We have now identified a target and are in the process of undertaking detailed due diligence. If completed successfully, our business in the Retail fit out sector could double. Trading Our business carries out work for occupiers fitting out space, and for ownersseeking to build or refurbish space. The following is a summary of the feeincome we earn from managing those projects, the gross value of work performedon those projects and the forward order book: 6 months to 31 Fee Income Gross Value of Forward Order December Work Performed Book 2006 2005 2006 2005 2006 2005 £m £m £m £m £m £mLondon• Fit out 16.9 10.2 164 111 280 211• Refurb 6.3 6.8 59 77 125 159• New build 3.6 5.4 36 65 158 167 Regional ConstructionBusinesses 13.7 9.5 94 50 239 212 National Retail &Leisure Fit out 4.6 2.2 33 12 22 27 Overseas• Asia 2.5 1.0 22 8 21 2• Europe 0.5 0.6 3 3 - --------------------------------------------------------------------------------- Total 48.1 35.7 411 326 845 778-------------------------------------------------------------------------------- Fee income grew strongly over the corresponding period last year, up 35% at£48.1m (2005: £35.7m) on volumes up 26% at £411m (2005: £326m). This increase ingroup fee income includes a full six-month contribution to fee income of £15.2mfrom the Propencity Group (ISG Totty, ISG Dean and Bowes, ISG Jackson) onvolumes of £104m (2005: £8.6m and £44m respectively). In addition, theacquisition of 100% of ISG Asia's trading operations resulted in an increasedfee income of £2.5m (2005: £1.0m) and volumes of £22m (2005: £8m). ExcludingPropencity and ISG Asia, fee income still increased by 17%. In London fee income increased by 20% due to a continuing increase in activityin London Fit out, where the forward order book has increased by 33%. Recentwins have included the new Eurostar Terminal, Standard Chartered Bank andfurther work with Nomura and Ascot Racecourse. As previously reported, activityin London New build in the first half of the current year had been impacted bythe cancellation of projects in the second half of the previous financial year.While the current forward order book is lower than for the same period lastyear, it is now higher than reported at the end of June increasing from £143m to£158m. Working with clients such as PPG Metro and TAG, London New build'sactivity should revert to a more normal level in the second half of the year.During the six-month period, the forward order book for London Refurbishment hasincreased from £103m to £125m, with recent wins including projects for ScottishWidows and Derwent London. Notwithstanding the reorganisation of ISG Totty, our Regional constructionbusinesses' volumes grew on a like for like basis by 11%, with the forward orderbook up 13% to a record level. Our Retail and Leisure fit out specialist service, ISG Dean and Bowes, grew on alike for like basis by 22%, with turnover for the period of £33m and fee incomeof £4.6m. During the period it has continued to add new clients such as Marksand Spencer and Woolworths. Fee income for ISG Asia increased on a like for like basis by 21%, in comparisonto an increase in volumes of 111% due to the change in mix of work between feeand non-fee based work. The increase in activity is partly due to theundertaking of the commercial office fit out of 280,000 square feet of DeutscheBank's new regional centre in Singapore. In Europe, our associate company IASA, in which we have a 20% shareholding, hascontinued to grow with turnover up 128% at £2.5m. Profits showed a decline inthe period to £0.3m (2005: £0.4m) due to the prior year result including anexceptional final account settlement. Activity in the Paris commercial officemarket has been buoyant. In addition the business has been extending itsoffering by providing commercial office fit out services to its internationalcustomers in other European cities. Prospects With the current strong demand for our services, the Group's total order bookhas continued to grow, up from £756m in June 2006 to £845m in December 2006,increasing by 12%. In London, the higher level of take up of offices by occupiers over the last 30months looks set to continue. Reflecting this, owners of property are continuingto commit to office projects.Outside London, our Regional businesses are continuing to see strong demand for their services in both the public and private sectors. We expect ISG Asia to continue to grow significantly in all its markets as ourinternational client base continues to invest in these growth economies. The outlook for the business remains positive. With a record order book, volumesin the second half of this year are likely to increase further. In addition, wewill continue to pursue acquisition opportunities in line with a clear strategyfor the further development of the Group. David LawtherChief Executive CONSOLIDATED PROFIT AND LOSS ACCOUNT6 months ended 31 December 2006Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 Notes £'000 £'000 £'000 Gross value of work performed 2 411,299 325,880 746,224Less: relating to construction management share of joint ventures' and associates' turnover (26,086) (33,479) (106,921) (7,327) (4,937) (10,879) --------- --------- ---------TURNOVER Continuing operations 363,713 287,464 628,424Acquired operations 14,173 - - --------- --------- --------- Group turnover 2 377,886 287,464 628,424 Cost of sales (360,207) (274,431) (597,523) --------- --------- ---------Gross profit 17,679 13,033 30,901Administrative expenses: Amortisation of goodwill (1,088) (482) (1,616) Other administrative expenses (14,627) (10,226) (24,519) --------- --------- --------- (15,715) (10,708) (26,135) --------- --------- ---------OPERATING PROFITContinuing operations 1,853 2,325 4,766 Acquired operations 111 - - --------- --------- ---------Group operating profit - continuing operations 1,964 2,325 4,766 Share of operating profit in joint ventures and associates 330 127 393 --------- --------- ---------Total operating profit 2,294 2,452 5,159Loss on disposal of subsidiaries - - (2)Profit on disposal of associates 106 - -Net interest receivable and similar income 678 637 1,381 --------- --------- ---------PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 2, 3 3,078 3,089 6,538Tax on profit on ordinary activities (1,135) (1,151) (1,460) --------- --------- ---------PROFIT FOR THE FINANCIAL PERIOD/YEAR 1,943 1,938 5,078 ========= ========= =========Basic earnings per ordinary share 5 7.36p 7.48p 19.33p --------- --------- ---------Diluted earnings per ordinary share 5 7.27p 7.41p 19.12p --------- --------- ---------Proposed ordinary dividends per share 4 3.30p 3.00p 10.00p --------- --------- --------- CONSOLIDATED BALANCE SHEET31 December 2006Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 Notes £'000 £'000 £'000FIXED ASSETSIntangible assets 39,829 34,063 38,157Tangible fixed assets 5,387 2,419 2,322Investment in associates 583 1,329 1,492 --------- --------- ---------TOTAL FIXED ASSETS 45,799 37,811 41,971 --------- --------- ---------CURRENT ASSETSStock and work-in-progress 2,749 2,137 3,346Debtors: amounts falling due within one year 134,435 115,565 113,461Debtors: amounts falling due after more than one year 3,532 7,523 5,726Cash at bank and in hand 38,549 32,751 38,215 --------- --------- --------- 179,265 157,976 160,748 CREDITORS: amounts falling due within one year (198,631) (171,447) (174,383) NET CURRENT LIABILITIES (19,366) (13,471) (13,635) --------- --------- ---------TOTAL ASSETS LESS CURRENT LIABILITIES 26,433 24,340 28,336 --------- --------- ---------CREDITORS: amounts falling due after one year (7,219) (7,316) (8,235) --------- --------- ---------TOTAL NET ASSETS 19,214 17,024 20,101 ========= ========= ========= CAPITAL AND RESERVESCalled up share capital 275 271 274Share premium account 8 12,184 11,480 12,096Other reserves 8 - 436 436Own shares 8 (2,504) (1,568) (1,457)Profit and loss account 8 9,259 6,405 8,752 --------- --------- ---------TOTAL SHAREHOLDERS' FUNDS 7 19,214 17,024 20,101 ========= ========= ========= CONSOLIDATED CASH FLOW STATEMENT6 months ended 31 December 2006Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 Notes £'000 £'000 £'000 Net cash inflow from operating activities 9 4,612 5,179 7,802Dividends from associates 10 57 162Returns on investments and servicing of finance 10 669 632 1,373Taxation (28) (584) (1,294)Capital expenditure and financial investment 10 (4,426) (215) (628)Acquisitions and disposals 10 (435) (15,244) (13,050)Dividends paid (1,847) (1,660) (2,480) --------- --------- ---------Cash outflow before financing (1,445) (11,835) (8,115) --------- --------- ---------Financing:Issue of shares (net) 89 137 756Capital element of payments under hire purchase contracts (9) (5) (14)Bank loans 2,002 9,882 11,614Repayment of long term debt (1,282) (485) (1,455) --------- --------- ---------Net cash inflow from financing 800 9,529 10,901 --------- --------- --------- --------- --------- ---------(Decrease)/increase in cash in the period/year 11 (645) (2,306) 2,786 ========= ========= ========= Reconciliation of net cash flow to movement in net funds (Note 11): (Decrease)/increase in cash inthe period/year (645) (2,306) 2,786Cash inflow from debt financing (724) (9,388) (10,109) --------- --------- ---------Change in net debt resulting from cash flows (1,369) (11,694) (7,323)Loans and hire purchase contracts acquired with subsidiary - (1,012) (1,012)Change in net debt resulting from non-cash changes 13 (4) (36) --------- --------- --------- (1,356) (12,710) (8,371)Net cash brought forward 25,778 34,149 34,149 --------- --------- ---------Net cash carried forward 24,422 21,439 25,778 ========= ========= ========= CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES6 months ended 31 December 2006Unaudited (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000Profit for the financial period/year: Group 1,721 1,860 4,795 Joint ventures and associates 222 78 283 --------- --------- --------- 1,943 1,938 5,078Currency translation differences: Subsidiaries (25) 14 15Currency translation differences: Joint ventures and associates (9) 57 17 --------- --------- ---------Total recognised gains and lossesrelating to the period/year 1,909 2,009 5,110 ========= ========= ========= Notes to the accountsUnaudited 1. ACCOUNTING POLICIES The Interim Accounts, which are unaudited, have been prepared on the basis ofthe accounting policies set outin the 2006 group accounts. 2. SEGMENTAL INFORMATIONGross value of work performed, turnover and profit before taxation may be analysed as follows: (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000Gross value of work performed by origin and destination: United Kingdom 386,633 314,699 724,298 Europe 2,524 2,849 5,060 Asia 22,142 8,332 16,866 --------- --------- --------- 411,299 325,880 746,224 ========= ========= =========Turnover by origin and destination: United Kingdom 363,713 285,724 626,284 Europe 2,524 2,849 5,060 Asia 18,976 3,828 7,959 --------- --------- --------- 385,213 292,401 639,303Less: Share of joint ventures'and associates' turnover (7,327) (4,937) (10,879) --------- --------- --------- 377,886 287,464 628,424 ========= ========= =========Profit on ordinary activities before taxation: United Kingdom 2,524 2,613 5,735 Europe 312 444 695 Asia 242 32 108 --------- --------- --------- 3,078 3,089 6,538 ========= ========= =========Net assets United Kingdom 12,770 14,629 17,505 Europe 1,654 1,320 1,484 Asia 4,790 1,075 1,112 --------- --------- --------- 19,214 17,024 20,101 ========= ========= ========= Fee income, which we consider to be a key indicator, is derived as follows: Turnover 377,886 287,464 628,424Trade contractor costs recharged (330,735) (252,322) (548,254) --------- --------- --------- 47,151 35,142 80,170Interest receivable 923 552 1,512 --------- --------- ---------Total fee income 48,074 35,694 81,682 ========= ========= ========= Fee income represents fees received directly from clients for construction services provided by the company's employees. The group has one class of business which is to provide construction services to its customers in the UK andinternationally. In accordance with industry practice, gross value of work performed includes £26,086,000 (December 2005 - £33,479,000; June 2006 - £106,921,000) in respect of the construction costs of projects on which the company acts as construction manager. These construction costs are billed directly to the client and are not invoiced via the group. Gross value of work performed, turnover and profit before taxation includes three months' activity for the Propencity subsidiaries for the six month period to 31 December 2005 and two months' activity for ISG Asia for the six month period to 31 December 2006. 3. RECONCILIATION OF ADJUSTED OPERATING PROFIT AND ADJUSTED PROFIT BEFORE TAXATION (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Total operating profit 2,294 2,452 5,159Amortisation of goodwill 1,088 482 1,616 --------- --------- --------Adjusted operating profit 3,382 2,934 6,775 ========= ========= ======== Profit before taxation 3,078 3,089 6,538Amortisation of goodwill 1,088 482 1,616 --------- --------- --------Adjusted profit before taxation 4,166 3,571 8,154 ========= ========= ======== We use adjusted operating profit and adjusted profit before taxation as measuresto facilitate comparisons between periods. 4. DIVIDENDS PROPOSED (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Proposed ordinary dividends on equity shares 908 820 1,920 ========= ========= ======== Proposed ordinary dividends per share 3.30p 3.00p 10.00p ========= ========= ======== The proposed interim dividend of 3.30p per share was approved by the Board on 26 February 2007 and will be paid on 17 April 2007. As required by FRS 21, the dividend has not been included as a liability as at 31 December 2006. 5. EARNINGS PER SHARE (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Profit for the financial period/year 1,943 1,938 5,078 --------- --------- -------- Basic and diluted earnings attributable to ordinary shareholders 1,943 1,938 5,078Amortisation of goodwill 1,088 482 1,616(Profit)/loss on disposal of subsidiaries (106) - 2 --------- --------- --------Adjusted earnings attributable to ordinary shareholders 2,925 2,420 6,696 ========= ========= ======== Number Number Number '000 '000 '000 Weighted average number of ordinary shares 26,417 25,899 26,271Dilutive share options 317 247 285 --------- --------- --------Diluted weighted average number of ordinary shares 26,734 26,146 26,556 ========= ========= ======== Basic earnings per ordinary share 7.36p 7.48p 19.33p --------- --------- --------Diluted earnings per ordinary share 7.27p 7.41p 19.12p --------- --------- --------Adjusted basic earnings per ordinary share before goodwillamortisation and profit on disposal of subsidiaries 11.07p 9.34p 25.49p --------- --------- --------Adjusted diluted earnings per ordinary share before goodwillamortisation and profit on disposal of subsidiaries 10.94p 9.26p 25.21p --------- --------- -------- 6. BORROWINGS Borrowings are included in the balance sheet as part of creditors due within one yearand creditors due after one year. (Audited) 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Bank overdrafts 2,259 908 1,280Bank loans 11,829 10,347 11,109Obligations under hire purchase contracts 39 57 48 --------- --------- -------- 14,127 11,312 12,437 ========= ========= ========Analysis of repaymentsBank loans and overdrafts within one year on demand 7,675 4,215 4,993 between one and two years 3,234 1,940 1,940 between two and five years 3,395 5,335 5,659Obligations under hire purchase contracts within one year on demand 18 57 19 between one and two years 14 - 15 between two and five years 7 - 14Less: Unamortised finance costs of debt (216) (235) (203) --------- --------- -------- 14,127 11,312 12,437 ========= ========= ======== 7. RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Profit for the financial period/year 1,943 1,938 5,078Dividends paid (1,847) (1,660) (2,480) --------- --------- -------- 96 278 2,598Foreign exchange(loss)/profit (34) 71 32Movement in own shares (1,047) 1 112Proceeds from share issue 89 1,915 2,534Credit to equity for share based payments 9 - 66 --------- --------- --------Net(deduction)/addition to shareholders'funds (887) 2,265 5,342 --------- --------- --------Opening shareholders'funds 20,101 14,759 14,759 --------- --------- --------Closing shareholders'funds 19,214 17,024 20,101 ========= ========= ======== 8. GROUP RESERVES Profit and Share Other loss premium reserves Own shares account £'000 £'000 £'000 £'000 Balance at 1 July 2006 12,096 436 (1,457) 8,752Profit for the period - - - 1,943Dividends paid - - - (1,847)Share premium arising on issue of shares 88 - - -Movement in own shares - - (1,047) -Credit to equity for share based payments - - - 9Realised gain arising on investments - (436) - 436Exchange differences - - - (34) -------- --------- --------- --------Balance at 31 December 2006 12,184 - (2,504) 9,259 ======== ========= ========= ======== 9. RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000 Operating profit 1,964 2,325 4,766Adjustment for share options 9 - 66Depreciation charges 511 282 791Amortisation of goodwill 1,088 482 1,616Profit on sale of tangible fixed assets - (2) -Decrease/(increase) in stocks 663 (76) (1,285)Increase in debtors (4,947) (8,581) (8,891)Increase in creditors 5,324 10,749 10,739 --------- --------- --------Net cash inflow from operating activities 4,612 5,179 7,802 ========= ========= ======== 10. ANALYSIS OF CASH FLOWS (Audited) 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2006 2005 2006 £'000 £'000 £'000Returns on investments and servicing of finance:Interest received 1,008 870 1,794Interest paid (339) (238) (421) ========= ========= ========Net cash inflow for returns on investments 669 632 1,373and servicing of finance ========= ========= ========Capital expenditure and financial investment:Payments to acquire tangible fixed assets (3,384) (217) (632)Receipts from sales of tangible fixed assets 5 2 3Payments to purchase financial investments (1,047) - -Receipts from sales of financial investments - - 1 ========= ========= ========Net cash outflow for capital expenditure (4,426) (215) (628)and financial investment ========= ========= ========Acquisitions and disposals:Purchase of subsidiary undertakings (4,775) (11,537) (11,543)Net cash acquired with subsidiary 3,113 - -Proceeds from sale of associate undertakings 1,227 - -Proceeds from sale of subsidiary undertakings - - 2,200Net overdraft acquired with subsidiaries - (3,707) (3,707)Net overdraft disposed of on sale of subsidiary undertakings - - -Proceeds from sale of joint venture - - - --------- --------- --------Net cash outflow for acquisitions and disposals (435) (15,244) (13,050) ========= ========= ======== 11. ANALYSIS OF NET FUNDS 30 June Non-cash 31 December 2006 Cash flow changes 2006 £'000 £'000 £'000 £'000 Cash at bank and in hand 38,215 334 - 38,549Overdraft (1,280) (979) - (2,259) --------- (645) ---------Debt due after one year (7,444) 946 - (6,498)Debt due within one year (3,665) (1,679) 13 (5,331)Hire purchase contracts (48) 9 - (39) -------- --------- --------- --------- 25,778 (1,369) 13 24,422 ======== ========= ========= ========= 12. ACQUISITION OF SUBSIDIARY UNDERTAKING On 30 October 2006 the group acquired the operating businesses of ISG AsiaLimited, in which it formerly had a 22.2% shareholding. The transaction waseffected through the acquisition of 100% of the issued share capital of ISGAsia's subsidiary ISG Asia Investment (Hong Kong) Limited for a fair valuecash consideration before expenses of £4,626,000, of which £1,227,000 wasfunded through the proceeds of the group's disposal of its 22.2% shareholdingin ISG Asia Limited. The fair value of the assets and liabilities acquired are detailed below andhave been determined on a provisional basis as the group is currently in theprocess of finalising the balance sheet as at the date of acquisition. £'000Tangible fixed assets 197Stocks 66Debtors 13,736Creditors (15,097)Cash at bank 3,113 -------- 2,015Goodwill 2,760 --------Total consideration 4,775 ========Satisfied by:Cash 4,626Directly attributable costs 149 -------- 4,775 ======== 13. APPROVAL OF INTERIM ACCOUNTS The Interim Accounts were approved by the Board of Directors on 5 March 2007. 14. STATUS OF FINANCIAL INFORMATION IN THIS ANNOUNCEMENT The financial information contained in this report does not constitutestatutory accounts within the meaning of section 240 of the Companies Act1985. The financial information for the six months to 31 December 2006 and thesix months to 31 December 2005 is unaudited and has not been reviewed by thegroup's auditors. The year ended 30 June 2006 comparative figures have beenextracted from the audited accounts. The accounts for the year ended 30 June2006, on which the auditors issued an unqualified audit report and which didnot contain a statement under either section 237 (2) or (3) of the CompaniesAct 1985, have been delivered to the Registrar of Companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ISG.L