ISA INTERNATIONAL PLC
20 October 1999
ISA INTERNATIONAL plc
('ISA' or 'the Group')
PROGRESS REPORT
ISA's interim results statement on 3 September indicated
that the results for the full year would be adversely
affected by costs relating to the consolidation of our
European operations as well as the costs of integration
of John Heath & Co Ltd ('Heath') with the Kaye Office
Supplies Ltd group ('Kaye'). The Board is now in a better
position to quantify these non-recurring charges.
The non-recurring costs will be approximately £3.8m,
relating to senior management and operational
rationalisation, and the Group's share of the costs of
integrating Heath with Kaye.
During the current year the Group has refined its
management structure, which now operates on a Regional
rather than individual country basis. The Board believes
that this more focused structure will enable tighter
control and faster response times to business issues than
has previously been the case.
However, there has been some temporary disruption to
sales volumes in Continental Europe, due to the depth of
the senior management reorganisation in France and as an
anticipated consequence of the move to outsourced
warehousing and logistics in Germany.
The Board are encouraged by the current level of gross
margin being achieved and anticipate that the improved
margins in the continuing Group from the 1st half will be
maintained. Underlying performance for the Group as a
whole in the 2nd half of the year is expected to be ahead
of the level achieved in the 1st half.
For further information, please contact:
ISA International plc
David Heap, Chairman and Chief Executive 0181 614 7814
Mike Murphy, Finance Director 01274 306 787
Square Mile Communications 0171 601 1000
Susan Ellis or Louise Robson