Chair of fit-out firm says there are signs of recovery in the capital but that activityin its regional businesses are likely to reduce
Fit-out specialist Interior Services Group is predicting an upturn in the London fit-out market for 2010 in a trading update. But it added that activity in its regional construction businesses are likely to reduce.
In a statement by Roy Dantzic, chair of ISG, demand for its London fit-out services was showing signs of a recovery. “Allocations for the calendar year 2010 under the framework agreements with our food and banking retail customers are strong. Our regional construction businesses will have a strong current year, but are likely to see reduced activity going into the next financial year”.
Dantzic said western and eastern European blue chip international clients were recommencing their investment plans, albeit at a slower rate than previously anticipated, while key Asian markets should deliver organic growth on the back of strengthening economic activity.
The group's current order book is £755m (June 2009: £822m), of which £500m is for delivery in the current financial year and £240m in the next financial year. “ISG's balance sheet remains sound and we expect to finish the half year with cash balances in line with the prior year,” Dantzic added. While our markets remain highly competitive, there has been no change to our expectations and confidence for the full year.”