David Lawther, chief executive of Interior Services Group, gave an upbeat assessment of industry prospects as his company posted a 7% fall in full-year pre-tax profit to £11.7m

Lawther said: “In the UK we’re seeing food retail and banking retail continuing with expansion programmes, which obviously benefits us. The London fit-out market has fallen but there are signs that it is stabilising now.”

ISG’s London fit-out turnover fell to £380m, but turnover in its retail division increased 52% to £208m. The firm’s order book fell 22% to £822m.

Lawther said: “In London and our regional businesses, we have already secured two-thirds of our targeted revenue for the current financial year. Overseas we continue to develop and expand our capabilities and are particularly excited about Asia and UAE. This is giving us an increased level of optimism for the longer term.”