ISG construction arm edges back into profit

Aaron Morby 10 years ago

Interior Services Group has streamlined its eastern construction division and brought retail work under a single management team.

The firm said it continued to adapt to a challenging market, and said it was was hopeful of improvement on both the fit-out and construction side from an improved order book.

Announcing results for the first half of the year, ISG said group pre-tax profits remained flat at £2.2m on turnover up 6% to £657m.

Its construction arm continued to struggle to deliver healthy profits making just £700,000 from £280m turnover.

David Lawther, chief executive officer, said: “The market remains competitive and we have seen particularly tough trading conditions in our East region where we are in the process of a reorganisation to reflect current market conditions.”

He added that the London office fit-out market remained fiercely competitive, with project sizes smaller, but larger scale projects beginning to re-emerge.

Fit-out turnover was boosted to £119m by major data centre work for Santander where the firm abruptly finished work this month.

ISG’s retail arm covering banking and food and high street shops has also been streamlined and now operates under the management of a single team.

Lawther said ISG had seen a fall in new build projects by retail customers and a shift away from major supermarket stores.

Despite the challenges ISG’s order book was ahead by 9% at £766m, of which £512m is for delivery in the current year.

Net cash slipped from £30m last time to £25m with banking facilities renewed until September 2015.

He added: “ISG has delivered an improved performance and growing order book despite the continuing market challenges in Europe.

“In the UK, we have maintained our market leading positions in the office fit out and retail sectors, while our construction business has increased its level of repeat work through its focus on key customers and frameworks.

“We have continued our progress into the engineering services and hospitality sectors, securing another major project in the period.

“Overseas, we continue to enhance our reputation and anticipate seeing growth in the second half.”

UK trading divisions

Construction: turnover £280m (£237m); profit £668,000(-£518,000); margin 0.2%

Fit-out: turnover £119m (£92m); Profit £2m (£2.3m); margin 1.7%

Retail: turnover £164m (£185m); profit £2.6m (£3m); margin 1.6%

Latest news

£500m Leeds South Bank scheme gets green light

Leeds City Council approves plan for 1,350 flats in mixed-use South Bank development
3 hours ago

Galliford Try takes rebid £150m Carlisle Southern Link Road

Main construction works are due to start on 8km road in June
12 hours ago

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
1 day ago

Balfour Beatty to invest £60m in pop-up EV chargers

New Urban Fox JV will roll out 35,000 charge points across the UK over the next decade.
17 hours ago

Worker dies on major warehouse site in Stafford

Main contractor Glencar halts work while tragedy is investigated
19 hours ago

Sellar switches London flats/hotel plan for 444 student rooms

Southwark's King’s Place scheme will comprise five buildings of up to 11 storeys
19 hours ago

Bid race starts for Norfolk £30m Long Stratton Bypass

Council hopes to start work on 3.9km bypass in April 2024
19 hours ago

GMI to build first warehouse at £200m Teesside business park

Work to start early next month on first shed at airport business park
18 hours ago

Skanska Costain Strabag JV sets up own rebar plant

HS2 team now running on-site manufacturing facility to avoid supply chain issues
19 hours ago

Bid rigging: Keltbray to appeal and so could Squibb

Both contractors "disappointed" with level of fines
4 days ago

Ten demolition firms fined £60m for bid rigging

Full details of fines with Erith and Keltbray hardest hit
5 days ago

Retail contractor J M Scully files administration notice

£23m turnover Dorset based contractor lodges court notice
4 days ago

Civils specialist M Lambe delivers record performance

Housing civils specialist seeks to diversify in face of challenging housing market
4 days ago

Willmott Dixon clinches £60m Oxford Brookes University job

Preparation work starts on two new buildings at Headington Hill campus
4 days ago

Ferns seals £50m+ Openreach network services deal

Five-year south west deal to provide civils, poling and complex manhole programme
4 days ago

20 firms win £4.5bn Southern construction framework

A dozen new firms secure spots on fifth generation public sector deal
5 days ago

Call grows for bolder 18m second staircase rule for flats

Architects, surveyors and builders professional trade bodies demand lower height threshold than proposed 30m
5 days ago

GRS Roadstone warns staff following cyber attack

Materials giant sends out letters highlighting the extent of the attack
5 days ago

Inland Homes to suspend shares as results delayed again

Auditors need more time to go through embattled house builder's books
5 days ago

Kier wins £73m Southport events centre job

Local supply chain set to benefit from major new project
5 days ago

Multiplex profit rebounds as margin restored to 2.9%

London tower builder predicts return to revenue growth this year as major schemes advance
5 days ago

Upbeat Vistry to re-open mothballed offsite factory

Former Countryside timber panel factories rebranded Vistry Works in revived drive to deliver 5,000 units a year
6 days ago

Builder crushed and blinded in wall collapse

Property owner in court after barn conversion goes horribly wrong
5 days ago

Keltbray bags £140m haul of energy infrastructure work

Specialist secures trio of power frameworks, two battery storage facilities and an energy from waste package
6 days ago

Government awards £1.8bn for energy retrofit schemes – list

Housing and public building decarbonising funds awards to support 20,000 construction jobs
6 days ago

Landmark London scheme switches from flats to student rooms

Regal London rethinks Old Kent Road scheme with 900 student rooms and 220 affordable homes
6 days ago

Align reveals designs for final portal of HS2 tunnel

Contractor confirms how final key structure on project will look
6 days ago

Plans in for 1.4m sq ft of industrial space at Fiddlers Ferry

Peel NRE to appoint demolition contractors for coal-fired power station in weeks
6 days ago

Tilbury Douglas to replace hospital hit by weak concrete

Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
7 days ago

Derby picked as destination for Great British Railways HQ

Public vote secures Derby's bid to be nerve centre of the rail industry
7 days ago

Contractor services