Uncertainty in London fails to dent record pre-tax profits at services specialist
Interior Services Group (ISG) has seen pre-tax profits rise by 30% over the last year.
In a strong set of full year results, the services specialist announced profits before adjustment hit £10.6m, up from £8.2m in 2006.
Turnover increased from £628m to £767m in the year to 30 June 2007, a leap of 22%.
ISG’s performance has been bolstered by its £11m acquisition in April of fit-out contractor Cathedral Contracts, which contributed £8.9m to turnover and £419,000 to pre-tax profit.
ISG also acquired the remaining part of its Hong Kong-based subsidiary ISG Asia in October 2006, in which it formerly had a 22% stake.
However, there was potential for trouble on the horizon as the company’s forward order book for fit-out contracts in London fell to £208m, down from £269m last year.
David Lawther, ISG chief executive, said: “In our view, the current period of uncertainty in the financial markets will help to create a more sustainable development market in London. Undoubtedly, some marginal or highly speculative schemes may not go ahead.
Across the board, activity in our London operations remains strong and we expect this to continue. With a record order book and profits at an all time high, we are well positioned to continue our strategy for sustainable long term growth.”