Incorporating new business reflected in results
Construction services group, Interior Services Group (ISG) has reported in its interim results that its pre tax profit before goodwill is up from £3.6m in 2005 to £4.2m for the six months ended 31 December 2006.
As a result of these results, the interim dividend for shareholders has increased by 10% to 3.30p. The group also reported that fee income increased 35%, although operating cash flow was down to £4.6m compared to £5.2m in 2005.
In October 2006 the group acquired ISG Asia, a company it previously had a 22% stake in. The business employs 350 people and provides a range of services across eight cities. For the same six month period ISG Asia reported a turnover of £36m.
But the group also reported that the integration of its new build and refurbishment division, ISG Totty has taken longer than expected and this is reflected in the results. The cost of the exercise was £0.5m but a trading loss of £0.7m was incurred in the first half on top of this as the reorganisation took longer than anticipated.
Commenting on the results, David Lawther, chief executive of ISG said: “Our core fit out markets remain very active in the banking and financial sector. Property owners are continuing to commit to major new office schemes. The pipeline for both large and mid-sized projects is good. We have won a number of significant new assignments including schemes for the new Eurostar Terminal, Standard Chartered Bank, Nomura, Scottish Widows and Ascot Racecourse.”