ferrets stock to watch: iss group limited

Ferrets Stock to Watch: ISS GROUP LIMITED
09:50, Friday, June 29, 2007

SOFTWARE COMPANY CARVING A GLOBAL NICHE IN MINING

Sydney - Friday - June 29: (RWE Aust Business News)
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OVERVIEW
********

Mining and exploration operations have been expanding at
unprecedented levels, so service companies that give support for things
to happen couldn't be in a better position.

Despite some of the prophets of gloom saying that it won't last,
developing countries like China and India will be knocking on the door
for years to come.

One company that has already carved out a niche in such a
support group is ISS Group Ltd (ASX:ISS) which delivers high quality
software products for the resources sector that assist clients to
visualise their operations in real time and optimise their operational
performance.

Since 1995, ISS has built an international reputation on
delivering quality solutions and its blue-chip client list includes
companies like Rio Tinto, BHP Billiton, Shell, Saudi Aramco, BP,
Woodside, Santos and Apache.

They have all chosen ISS products to meet their operational
management and reporting needs.

Until now ISS Group has wanted to get the runs on the board
before it lifted its profile.

In the last fortnight, the ISS Group reported that it had been
successful in attracting initial orders in its North American and
European offices and continuing orders in Asia.

This was in response to substantial investment in marketing
overseas.

ISS Group has been committed to strategically resourcing its
international branches over the last two years.

This is beginning to pay dividends as ISS has now received firm
orders from leading players in the global energy, oil, gas and process
markets.

Based in Houston, Texas, the company's North America office has
recently received orders from Hess Oil in Houston (via its partner
company Industrial Evolution Inc), and a specialty electronics chemical
producer in the northeast of the US.

These orders demonstrate the cross-industry capability of ISS's
product line and are supportive of significant opportunities for
expansion.

Based in Southampton, UK, the European office has also confirmed
receipt of orders from Huntsman Chemicals (now Sabic) and BG
International Ltd (formally British Gas).

The BG order covers the design for a global rollout of ISS
software across the BG Group assets.

Based in Singapore, ISS Group Asia is continuing to receive
orders in the region from companies such as ConocoPhillips, Petronas,
Kodeco as well as ongoing work with Saudi Aramco.

In addition to the new orders received, each of the branch
offices has a very healthy pipeline of sales opportunities coming into
the 2008 financial year.

SHARE PRICE MOVEMENTS
*********************

Shares of the ISS Group yesterday rose 6c to a record 58c. The
low for the past 12 months is 17.5c. Dividend is 1c to yield 1.74 per
cent. Earnings per share is 1.74c and p/e ratio 31.03. The company has
75.2 million shares on issue with a market cap of $40.6 million.

Earlier this year, ISS Group reported solid growth in both
revenues and profit before tax for the six months December 31.

This augurs well for the full financial year about to end.
Revenue grew by 26 per cent and profit before tax grew by 20 per
cent over the previous corresponding period.

The increase in both revenue and profit is a result of its
continuing investment in marketing in Australia and overseas and product
enhancement through its commitment to product excellence via its R&D.

Based on the first-half results, the ISS board decided to pay
an interim dividend of 0.5c per share (unfranked).

ISS is committed to expanding the operations of the company with
a continued focus on the growth of its products in the international
market.

Managing director Shane Attwell points out the company has been
taking full advantage of the Western Australian resource boom and also in
parallel developing overseas markets.

Major operational changes in the six months to December and
establishing key offices close to clients have raised brand awareness in
the surrounding regions.

Already, each branch has issued several key proposals and are
now progressing with a number of promising opportunities.

As was the case in Asia, the ISS technologies have been well
received in both of these regions.

The Shell Canada project is a very good example of this
acceptance, as ISS won the bid against competing major North American
technologies.

ISS continues to invest significant funds on the development of
the geospatial add-in to its flagship product BabelFish.

This R&D has been supplemented by the AusIndustry R&D grant ISS
received from the Australian government.

In the Middle East, ISS has received preferred vendor status
with Saudi Aramco as a result of the success of the ongoing pilot
projects.

In addition, ISS is pursuing several opportunities in this
region.

ISS Group is well positioned to move forward globally; well
beyond the extent of the current boom conditions being experienced in
domestic and international oil, gas and minerals markets.

"In short, we expect to achieve significant growth in our
overseas revenues in the next fiscal year as a result of heightened
awareness of our BabelFish application and complementary minerals, oil
and gas suite of products," Mr Attwell says.

After successful implementations last year of the BabelFish
software at the Rio Tinto Cape Lambert, Yandi and Tom Price sites, ISS
announced that it has been contracted to supply this software at a
corporate level across the remaining Rio Tinto Pilbara iron sites.

Revenue for the remaining phase of the project is expected to be
in excess of $1 million.

Implementation of the software will be conducted over the next
six months with ongoing maintenance revenue continuing over the next
three years.

"After successfully demonstrating the benefits of the software
on the initial site roll-out, this contract provides confirmation of the
value that BabelFish can provide an operation," Mr Attwell said.

"With the costs associated with downtime or non-performing
assets, it is imperative that an organisation can monitor and
pro-actively manage their assets real time to ensure that they are
operating at optimum levels.

"The BabelFish application and its inbuilt visualisation, event
detection, calculation and modelling tools provide this capability over
the web," he added.

BACKGROUND
**********

ISS Group joined the Australian Stock Exchange list in
September 2004.

It has since expanded internationally and now has offices in
Australia, USA, Singapore and the UK.

The company has partners in Canada, Saudi Arabia, Malaysia and
Indonesia that provide local assistance with sales and service.

ISS Group delivers high-quality software products for the
resources sector that assist its clients to visualise their operations in
real time and optimise their operational performance.

ISS Group's flagship product BabelFish provides the back-bone
for all of its solutions.

BabelFish is a framework that enables clients to integrate data
from their operational systems, field equipment and management
applications.

This data is then logically grouped and displayed graphically in
a way that mirrors the organisation's exact real-time operational
environment.

It creates a powerful platform from which operational staff and
management can view and make informed decisions on plant operations in
real time.

ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved.