Contractor reveals drop in UK fit-out work from banking and food clients

ISG has posted a drop in pre-tax profit of 60% in its half year results to December 31 2011, as its UK fit-out business was hit by a fall in work from banks and retailers.

The contractor, which did the fit out for the Olympic stadium, revealed several of its banking and food retail clients had pushed back or cancelled work – which led to the firm issuing a profit warning earlier this year.

Pre-tax profit at the group overall fell to £1.8m during the period, compared to £4.5m over the same period the previous year.

However, overall revenue rose marginally from £621m to £623m, thanks to growth in the contractors’ international markets. ISG now generates 27% of operating profits from overseas.

Chief executive David Lawther said: “Our market leadership in the corporate office fit out, food retail and retail fit out sectors continues to deliver repeat business and a reliable order book, which will enable us to benefit from any upturn particularly in the UK.

“The slowdown in the UK retail sector has affected our short term expectations of our retail business.”