Fit-out specialist Interior Services Group this week defended its prospects despite the slowdown in the London office market.
Executive chairman David King said the group suffered from the perception that Interior, its fit-out arm, would be hit by the decline in the capital’s commercial sector.

King said that, although ISG was a dominant player in that market, it was not dependent on it.

He said: “Interior’s strength is that it can adapt to new markets and regions quickly, avoiding dependence on a single market and that it works for both occupiers and owners of office space.”

King admitted that the number of large projects in the financial services sector was declining, but added that that type of work made up only 15% of Interior’s workload, compared with 70% in 1998. He added that 40% of the division’s orders were from outside London, and that markets such as education and retail were buoyant.

ISG’s strength is that it can adapt to new markets and regions quickly

Dave King, chairman, ISG

King made the comments as ISG, which is listed on the alternative investment market, posted a 15% jump in pre-tax profit for the year to 30 June.

Profit increased from £6.2m to £7.1m, and fee income rose £5.1m to £54.3m. The group’s turnover was £405.7m.

King said ISG’s facilities management division continued to struggle in difficult trading conditions, although the market did improve towards the end of the financial year.