Interior Services Group PLC
('ISG' or the 'Group')
As previously announced on 17 April 2008, two of ISG's subsidiaries, the Propencity Group and Pearce Construction (Midlands) Limited, which were acquired in 2005 and 2007 respectively, have been investigated, along with 112 other construction companies, by the Office of Fair Trading ('OFT') for technical breaches of competition law.
As a result of its investigation the OFT has decided to fine Propencity and Pearce for these breaches, which occurred between 2001 and 2005, prior to ISG's ownership.
Pearce Construction (Midlands) Limited ceased trading under the then owners Crest Nicholson in 2003. Under ISG's ownership, the management of Propencity Group was changed and its respective systems and procedures have been investigated, reviewed and changed to ensure conformity with ISG's strict compliance policies.
The fine for Propencity Group was abated due to its full cooperation with the OFT during its investigation and hence the net cost will be £98,042.
The fine of £5.2m for Pearce Construction (Midlands) Limited is on a joint and several basis with Crest Nicholson. ISG has a £2m cash backed indemnity from the vendors of Pearce Group. We will make a further announcement to shareholders once the final quantum of ISG's share is known.
All ISG companies operate under a strict set of regulations that exceed the minimum standards of commercial compliance set out by legislative bodies. The business works to a highly ethical code of conduct and is committed to maintaining strong, mutually beneficial customer relationships, working extensively across the public and private sectors to deliver high quality, best value solutions.
We are currently considering the detail of the OFT's decision to determine if any further actions need to be taken.
22 September 2009
Interior Services Group
020 7247 1717
David Lawther, Chief Executive
Jonathan Houlton, Finance Director
020 7457 2020
020 7260 1000
Nominated Advisor: Michael Meade/Simon Blank
Corporate Broking: Chris Wilkinson/ Rupert Krefting
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