ISG suffers £27.8m loss

ISG suffers £27.8m loss

ISG has today reported a loss of £27.8m for the year ending 30 June 2015 following a difficult start to the year and the restructuring of its UK construction division which saw its Tonbridge office close.  

ISG said it made a pre-tax loss of £12.9 million in the year to the end of June, compared to a £6.8 million profit the previous year, attributing £19.9 million in costs related to the restructuring of its construction business and losses made on contracts the division secured between 2012 and 2013.  

The UK construction division made an operating loss of £18.1 million for the year on £446 million revenues from continuing operations. The year prior, it made a £2.5m profit from revenues of £436 million.  

 

 

Despite this, the firm remains confident the worst is behind them as conditions significantly improved in the second half of the year, with particularly good trading within its fit-out, engineering services and retail businesses. In support of their claims, ISG staff numbers rose from 838 to 898 despite their woes.  

 

 

ISG’s Chief Executive, David Lawther, said: “It has taken two years to work through the legacy of poor contracts taken on in the recession.  This has been a costly exercise in which we have closed our Tonbridge office, announced the closure of our loss-making London Exclusive Residential activities, and recognised significant losses on a small number of projects that are now complete.  Margins on new work won over the past two years have been on significantly improved contracted terms and tightened control as we have improved management focus on repeat, framework and lower risk contracts.  We believe the poor performance and painful restructuring of the UK Construction division are now behind us.”  

 

 

"We believe that the poor performance and painful restructuring of the UK Construction division is now behind us, and with the outlook for most of our key markets remaining strong, we expect a much improved overall performance for the Group in the year ahead.  

 

“Looking ahead, the London office fit out market remains strong and, in the short-term, will be focused on medium-sized and refurbishment projects, whilst in the medium term, we will see larger-scale projects feature more prominently again. The UK’s economy is stable and we expect further opportunity in other major UK cities.  

“With strengthened management, a simplified structure, a focus on repeat business and more favourable market conditions, a significant improvement in the performance of our UK Construction division is expected.   “Overall, we expect a much improved performance in the year ahead.”

Please rate

Comments 

Ctrl + Enter

Most Read

H2S: It’s an exciting time to be a civil engineer

H2S: It’s an exciting time to be a civil engineer

The High Speed Two (H2S) has been described as a game-changer and the greatest ever upgrade to Britain's railways, and without doubt, this United Kingdom’s high-speed rail project has been a hot topic. The H2S project aims to meet the United Kingdom’s high

Five CV skills employers look for in every jobseeker

Five CV skills employers look for in every jobseeker

Employers have a ton of CV and applications to sort through, and you can be sure that they do not spend an awful amount of time on each application. This is why it is important to stand out as much as possible, or possibly tailor your CV to suit the exact requirements that employers keep an eye

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.