Pre-close Statement

Inspace Plc
25 January 2007


Press Release                                                    25 January 2007


                                  Inspace plc

                          ('Inspace' or 'the Company')

                              Pre-close Statement


Inspace plc (AIM:INSP), one of the UK's leading specialist service providers to
the social housing market, will announce its final results for the year ended 31
December 2006 on Tuesday 27 March 2007.  An analyst briefing will be held at 
09:00 that same morning at the London Stock Exchange, 10 Paternoster Square, 
London EC4M 7LS.

The Directors are pleased to confirm that the overall trading position is in
line with market forecasts for the year ended 31 December 2006.

The acquisition of Widacre Limited on 31 August 2006, which was a major
strategic development for Inspace, has already begun to deliver positive
benefits.  Its contribution to results for the year ended 31 December 2006 is
likely to exceed original expectation, it has significantly strengthened
workload visibility, and it has improved the prospects of securing significant 
'Decent Homes' stock reinvestment contracts moving forward.  Widacre has been
fully integrated into Group operations with all social housing activity now
operating under the name of Inspace Partnerships and affordable housing activity
operating as Inspace Homes.

Customer support has been excellent, acknowledging the strategic merit in
assembling a combined maintenance, stock reinvestment and design and build
service in response to evolving government policy.  The announcement by Rt Hon
Ruth Kelly MP, Secretary of State for Communities and Local Government, on 17
January 2007 that the Housing Corporation and English Partnerships are now to be
combined under the banner of the new Communities England agency provides further
evidence of a shift towards holistic, sustainable and more sophisticated
solutions to meet the growing demand for social housing.

Widacre's increasing contribution to Group results has relieved the pressure on
pre-acquisition operations, which faced a number of short term challenges
highlighted at the half year, and allowed an accelerated and more radical
approach towards shaping and developing the enlarged business.

In social housing terms, the business has successfully mobilised two new repair
and maintenance contracts, for the borough of Hinckley and Bosworth and for
Yorkshire Coast Homes, and has secured four further social housing frameworks
with the Connected consortium, Hyde Housing Group, Thames Valley Housing
Association and Aldwyck Housing Association, expected to contribute total
combined sales of around £60 million over four years, starting in 2008.  This
brings the total number of secured frameworks to twenty-three, and the total
value of secured orders and frameworks awarded since the summer to in excess of
£160 million.  Secured orders and frameworks now sit at around £1.4 billion.  Of
equal importance, this division appears closer to winning its first major Decent
Homes contract.  Having recently been selected as 'reserve contractor' for a
major scheme involving significant Decent Homes investment suggests the Group's
increasing competitiveness in a strategically important and previously
underexploited sector.

Affordable housing operations are already well placed for 2007, with most unit
sales now reserved and the majority already exchanged.

Despite the short term impact on sales, the corporate assets division has
continued to implement a change programme aimed at increasing the quality and
visibility of its workload and the efficiency of its operational delivery.  The
programme, which includes smaller, shorter term or lower margin accounts being
sacrificed to concentrate efforts upon those offering greater growth potential,
is now entering what is expected to be the last and most radical phase.  This
will see operational teams realigned around customer accounts rather than
regional centres, and the roll out of new service management and financial
control systems following the completion of software development.  These changes
are expected to unlock real efficiency benefits during the second half of 2007.

The Directors are satisfied with the progress achieved during the period and are
confident that a solid platform has been established for future growth across
all three divisions.

                                    - Ends -



For further information:
Inspace plc                                      
Andrew Telfer, Chief Financial Officer                 Tel: [phone]
[e-mail]                                    www.inspace.co.uk


Seymour Pierce
Mark Percy, Corporate Finance                          Tel: [phone]
[e-mail]                                www.seymourpierce.com



Media enquiries:
Abchurch
Henry Harrison-Topham                                  Tel: [phone]
[e-mail]                               www.abchurch-group.com


Notes to editors

Inspace plc is a property based support services group, and one of the UK's
leading specialist service providers to the social housing market, Inspace has
three complementary areas of activity: social housing, affordable housing and
corporate assets.


Social Housing - creating and maintaining sustainable homes

The division is one of the UK's leading specialist support service providers to
social housing landlords through long term framework contracts.  Its services
comprise major 'repair and maintenance', 'stock reinvestment' and new build
programmes for local authorities, Arms Length Management Organisations (ALMO)
and Registered Social Landlords (RSLs).

Total spending on social housing is currently around £14 billion per annum, of
which around £10.3 billion is spent on repair, maintenance and improvement.  Of
this, £4 billion is spent on ongoing repair and maintenance, with the remaining
£6 billion being spent on capital projects such as major refurbishment and
improvement.  This includes a contribution of between £1 billion and £2 billion
a year from the Decent Homes initiative.  The provision of new housing, which is
currently running at around 35,000 units a year, adds a further £3.5 billion to
this sum.


Affordable Housing - developing integrated communities

The affordable housing division specialises in the provision of low cost homes
for sale in partnership with RSLs, usually alongside social housing built by the
Social Housing division, as part of more extensive mixed tenure schemes.  It has
already established a number of joint venture companies with RSLs and through
its involvement in the Key London Alliance consortium, has been appointed to
provide mixed tenure developments under the Government's London Wide Initiative.


Corporate Assets - improving and maintaining public and private real estate

The corporate assets division provides a comprehensive repair, maintenance,
capital works and interior design service across public and private sector
non-residential real estate.  It delivers 24/7 integrated maintenance services
across England, Scotland and Wales through its national network of branches and
'home based' mobile engineers.  Its specialist design-led service offers
customers an integrated interior design, installation and furnishing 'one stop'
solution.


Further information on Inspace can be found at www.inspace.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange