ISG delivers record results for third year

Aaron Morby 5 years ago
Share

ISG has delivered a third consecutive record-breaking year with underlying profit topping its £50m target two years early.

ISG chief is confident the group can resume strong growth in 2021 after challenging coronavirus year
ISG chief is confident the group can resume strong growth in 2021 after challenging coronavirus year

Chief executive Paul Cossell said the group was well placed to meet the covid-19 challenge and warned that he expected revenue between March and June to fall by 25%.

Like other contractors, ISG has implemented pay cuts among the highest-paid and furloughed staff.

Cossell said: “Covid 19 creates uncertainty for the remainder of the financial year, but the board has further cash preserving measures that it is willing to implement if appropriate, recognising that maintaining our dedicated and talented people is a key priority in anticipation of the increased volume of work in 2021.”

Last year ISG lifted underlying profit by over a third to £52m on revenue ahead 15% at £2.6bn.

This left ISG with net cash of £117m, up from £74m in 2018.

The pre-tax figure was depressed by £8m to £44m after exceptional costs closing ISG’s Brazilian business.

ISG achieved its target of 2% net operating margin in 2019, and entered 2020 with a forward order book of £1.4bn.

Profit growth was driven by the engineering services business, which focuses on data centre and complex science and healthcare work. It more than doubled profit to £25m on revenue ahead 65% to nearly £800m.

The firm’s fit-out business had a stable year delivering a small uplift in profit to £23m on stable revenue of £1.2bn.

The construction arm saw profit slip from £5.7m to £4.4m over the year on revenue ahead 8% at £520m.

Cossell said: “As we look to 2020 and what promises to be a year of unknowns, I am confident in our continued strength.

“Even with Covid 19, we will work to set strong foundations for future growth.”

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
20 hours ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
20 hours ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
1 day ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
1 day ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
1 day ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
2 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
2 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
3 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
4 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
3 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
4 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
5 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
5 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
4 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
5 days ago