ISG chairman and chief executive David King said the firm aimed to offer its construction skills in the supply and management of buildings. Until now, it has focused on construction. “We don’t want to be stuck at the supply end,” says King. He wants 40% of ISG’s profit to come from long-term facilities management-style contracts by 2001.
King said that ISG would rebrand itself as a services supplier. He said there was a growing demand among clients for property solutions ranging from outsourced security guards to comprehensive private finance initiative contracts. “There isn’t a client we’ve talked to who hasn’t got one of these issues on its agenda.”
King said future growth would also come from foreign markets, including Ireland and mainland Europe. The firm is set to announce the next phase of its move into Europe, a joint venture with a small French fit-out and refurbishment company.
The group has bought a number of services companies in 1999. Eurica bought FM provider Care Services for £12m last month. This followed the acquisitions of property managers H Waters & Co and Walker Son & Packman earlier in the year. King said he wanted to sell the services they provided to existing customers.
The group was floated on the Alternative Investment Market in June 1998 and King said flotation on the main stock market was an option if the company was allowed to list itself in the support services sector.
“The jigsaw is 90% complete,” said King. He added that acquisitions in facilities management, IT and technological management would be considered.
The company raised pre-tax profit 48% to £4.3m for the year to 30 June 1999. Turnover was up more than one-third to £199.5m over the same period.