Shares digital

Interior Services Group (ISG:AIM) – Interims PTP: £5.8m (£4.1m) Divi: 4p (3.3p)

Could these results finally be the time when the market realises ISG’s exposure to the weak London commercial property market has been greatly reduced? At the end of 2006, London accounted for 64% of group profit. One year later, this figure drops to 46% with the intention of dipping below 30% within the next 18 months.

Failure by the City and investors to recognise the company’s progress in diversifying operations has seen the share price halve in the past ten months. Reaction to the half-year results saw the first notable upturn in the stock since early 2007, rising 7% to 187p.

In addition to expanding regional operations, fitting out and refurbishing retail banks and shops, ISG continues to build overseas business, particularly in mainland Europe and Asia. This should be the driver for growth during 2008.

Shares says: Extremely cheap on a PE of 4.3.

by: Dan Coatsworth