Pre-Close Statement

Inspace Plc
25 July 2007


Press Release                                                    25 July 2007




                                  Inspace plc



                                  ('Inspace')



                              Pre-close Statement



Inspace plc (AIM:INSP), one of the UK's leading specialist service providers to
the social and affordable housing market, will announce its interim results for
the six months ended 30 June 2007 at 0700 a.m. on Tuesday 25 September 2007.  An
analyst briefing will be held at 0900 a.m. that day at the offices of Dresdner
Kleinwort, 30 Gresham Street, London EC2P 2XY.



The Directors are pleased to confirm that the trading outcome for the half year
is expected to be ahead of consensus forecasts.   Revenue growth was
particularly strong, helped by the improved order book position entering the
year and by less seasonal distortion in customer spending patterns than
previously experienced.  With an increasing proportion of Social Housing work
coming from Registered Social Landlords (RSL's), the business is now less
affected by the local authority budget cycle.



The outlook for the full year, which ends on 31 December 2007, remains in line
with consensus estimates.



Social and Affordable Housing

Social Housing is the largest division, representing approximately 70% of Group
revenues.  The division is focused on building sustainable, socially integrated
communities through mixed tenure development precisely aligned with current
Government policy.



Margins have been strong in regeneration and new homes, which now represents
over two-thirds of Social Housing revenues, outweighing some margin pressure in
maintenance and stock reinvestment where competition is growing and key
performance indicator targets, which influence incentive payments, are becoming
more stretching.



Other Government initiatives such as replacing the Housing Corporation Grant
with development cross-subsidy and building more environmentally efficient homes
also play to the Group's strengths and strategies.



Inspace welcomed the Government's recent commitment to substantial long-term
growth in affordable housing.  In the words of the new Prime Minister: 'Putting
affordable housing within the reach not just of the few but of the many is vital
both to meeting individual aspirations and a better future for our country.'
Three million new homes are now expected be built by 2020 (a 9% increase on the
previous plan) and the annual build target has been raised by 20% from 200,000
to 240,000 new homes in England from 2016 onwards.  In light of this, Inspace
expects sustained strong demand for new homes.  By way of illustration, the
Group recently announced a £37.5 million three-year contract to design and build
key worker accommodation at St. George's Hospital in South West London.  This is
the third such scheme between Inspace and Thames Valley Housing Association and
when completed in 2010 will provide over 600 units and a nursery.  In addition
to the St George's contract, two major schemes for Places for People and A2
Housing have now moved from the preconstruction phase to signed construction
contracts.



Sales rates and trading margins of entry level homes for sale have remained
strong despite the background of rising UK interest rates, suggesting that
demand from first time buyers in London remains resilient.  New Government plans
to accelerate the planning process and to free up land owned by various
Ministries are welcome, with planning constraints in particular often cited as
the major impediment to development programmes.  Planning permission has
recently been secured for the London Wide Initiative site at West Middlesex
Hospital, where Inspace is working together with English Partnerships and
Notting Hill Housing Group, which should see 280 new homes built over the next
three years.  Consistent with Government policy, the development will create an
integrated community with homes for rent, open market homes for sale and
subsidised homes for sale to eligible key workers.



Corporate Assets

As indicated last year, margins in the Corporate Assets division will remain
under pressure during the final stage of a change programme that will see
operating structures realigned and new technology introduced across all
maintenance activity.  With the programme now in its final phase and its
completion due by the end of 2007, the early signs of potential efficiency
improvements are encouraging.  Demand for the interiors service remains
particularly strong and the new furniture service has been well received.



Outlook

The 2007 social housing workload position is substantially secure and over 80%
of 2008 consensus social housing revenues are now visible as secured orders and
preconstruction commissions.



New orders received from organisations such as Barclays Bank, Cemex, Haringey
Borough Council, Leicester City Council and Whitbread Restaurants has put
Corporate Assets on track to meet its year-end target of having at least 75% of
its 2008 workload order book secured when 2007 accounts are closed.



Overall, the Board remains confident that Inspace is trading in-line with full
year consensus.



                                    - Ends -



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


Dresdner Kleinwort
Christian Littlewood                                   Tel: [phone]



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



Notes to editors



Inspace plc is a property based services group, and one of the UK's leading
specialist service providers to the social and affordable 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 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


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