The London fit-out recovery is at an early stage with stiff competition putting pressure on margins, which fell from 2.7% last time to 1.7% in the six months to December.
David Lawther, chief executive, said: “We expect to see a more complete recovery of the London fit out market as we move through 2012.
“The commercial office fit out market in London has shown good signs of recovery, though the overall trend is currently towards smaller projects and refurbishment.
“Both our retail banking fit out and food retail markets are particularly strong with revenues in these areas significantly increased.
“Our blue chip client base will go on providing demand outside the UK.”
He added: “We will continue to target growth both organically and via acquisition.”
But ISG predicted the important fit-out mark was on track to stage a full recovery by 2012.
Group pre-tax profits recovered to £5.7m from £5.2m last time.
ISG divisions in six months to December
- UK fit out: Profit £3.3m (-14%); turnover £193m (39%); margin 1.7%
- Construction: Profit £2.3m (-28%); turnover £248m (1%); margin 0.9%
- Food retail: Profit £2.3m (110%); turnover £107m (112%); margin 2.1%
- Europe fit out: profit £0.1m; turnover £41m (228%)
- Asia fit out: Profit £0.2m; turnover £33m (-11%); margin 0.6%
