Forward orders down at fitout specialist with overseas operations hit but London market performing well
Construction services outfit ISG has seen a 61% drop in pre-tax profit to £2.4m, down from £6.3m, for the half year ended 31 December 2009, with forward orders also taking a hit.
In December the group order book was £780m, compared with £950m the previous year. This is weighted towards the private sector, which comprises 63% of the work.
The group also saw a 14% slide in turnover, which was down to £484m from £562m.
Chief executive David Lawther said: "Whilst our markets remain highly competitive, we have weathered the worst of the fallout from October 2008 and as these results demonstrate we are emerging in good health.
“We now feel confident that the group is well placed to resume the growth path demonstrated from 2004 through to 2008 as markets recover.”
We now feel confident that the group is well placed to resume the growth path demonstrated from 2004 through to 2008 as markets recover
David Lawther, ISG chief executive
Divisionally, London and regional construction proved to be the strongest performers, while overseas operations Asia and Europe both showed a lower contribution.
Analyst Numis Securities said: “It is early days in terms of the outlook for fitout and the London market, but there are tentative signs of recovery in early cycle areas.
"This, coupled with good growth prospects overseas and a robust outlook for retail, backs up the positive comments the management makes about having weathered the worst and being well placed for growth.”
On 31 December ISG’s net cash was £32m, with a further £10m of undrawn committed facilities in place through to mid 2013.