ISG executive chairman David King also pointed to cultural difficulties, especially in Germany. He said: "We spectacularly failed to do things as a local company serving German companies." He added that running the operation had also taken up too much management time.
The group, which is listed on the alternative investment market, experienced a slight drop in pre-tax profit, from £8.1m to £7.9m, for the year 30 June 2003. Turnover fell £4m to £402m for the period, partly a result of the slowdown in the London fit-out market.
King said it planned to become a major supplier in the PFI market. He said: "We are not targeting the big ticket items – we do not have the balance sheet to support it."