黑洞社区

Fit-out was the star performer at ISG last year as a string of deals including a 拢100m job to overhaul the Canary Wharf headquarters of Barclays Bank helped boost revenue at the division by a third.

The business accounted for more than half the group鈥檚 revenue in 2021, which improved 11% to 拢2.3bn.

Group pre-tax profit recovered from 拢8.9m during a covid-hit 2020 to 拢18.5m with fit-out鈥檚 earnings before interest, tax, depreciation and amortization (EBITDA) jumping a quarter to 拢36.5m.

ISG said the year was one of fit-out鈥檚 most profitable and was helped by a slew of high-profile deals including the new UK headquarters of US tech giant Facebook in King鈥檚 Cross and a 拢75m deal for Apple鈥檚 new office at the Battersea Power Station redevelopment.

Turnover at the division was up to 拢1.4bn from just over 拢1bn last time with its forward order book improving from 拢700m to 拢777m.

Business is expected to remain brisk as firms look at ways to give their offices a makeover in the wake of the pandemic.

In January, new chief executive Matt Blowers, the former head of fit-out who replaced Paul Cossell after five years in charge at the start of the year, told 黑洞社区: 鈥淎n office is a shop window into a business鈥檚 culture. There is a massive war on talent not just in our sector but across the piece. People are investing significant money on getting their facilities in a great place to retain talent and attract the best.鈥�

ISG added that its Agility business, which concentrates on smaller fit-out schemes, saw turnover top the 拢100m mark for the first time.

The firm鈥檚 construction business, which last year completed the new Compton and Edrich stands at Lords cricket ground, saw revenue slip 3% to 拢670m but EBITDA was up to 拢4.4m from 拢1.9m in 2020.

The business, which has an improved forward order book of 拢531m, said it wants to use more modern methods of construction and in March this year ISG shelled out 鈧�10.4m (拢9m) in cash for a 61% stake in Irish firm Kardomagh Holdings which operates as ESS Modular and which has four offices, including Belfast and Manchester, and three factories.

ISG said it had bought a controlling share in order 鈥渢o bring additional MMC capability and utilise its manufacturing facilities to the wider ISG business and to fast-track ISG鈥檚 journey developing and implementing leading edge-built solutions鈥�.

The firm鈥檚 engineering services sector, which includes science, health and data centre work, saw income fall 44% to 拢164m with EBITDA slipping two-thirds to 拢2.5m. ISG blamed the drops on project delays and travel restrictions caused by the pandemic.

In its accounts, the firm said that work from its engineering services business in Belgium had fallen from 拢165m in 2020 to just 拢1.2m last year although work in Spain had jumped from 拢600,000 to 拢40.7m.

The number of people employed at the business remained flat last year at 3,000 with the firm shelling out 拢1.9m on termination payments 鈥� down from 拢4.4m. It added that the amount it claimed in government grants for job retention was 拢100,000, down from 拢6.1m the year before.

The group鈥檚 overall forward order book was up 拢100m to 拢1.6bn with net cash up to 拢120m from 拢101.5m.