ISG is recruiting in every division except construction, says its chief executive David Lawther, who predicts a 10% drop in regional work over the next six months

As the company reported a 7% drop in turnover for the year to 30 June, Lawther said: 鈥淲e鈥檙e recruiting in food retail, bank retail, London fit-out, Europe and Asia. Construction is the only business we鈥檙e not recruiting in and yes, it鈥檚 going to have a hard time.鈥�

Turnover fell from 拢1.05bn to 拢972m while pre-tax profit was 拢8.7m, down from 拢11.8m in 2009. Its order book, 30% of which is public sector, stood at 拢742m compared with 拢822m last year.

But its regional construction business, which accounts for a third of the firm鈥檚 turnover, is weighted 62% towards the public sector. The division recorded turnover of 拢338m (2009: 拢367m) and an operating profit of 拢3.5m (拢3m). Its order book was 拢276m compared with 拢286m in 2009.

Lawther said: 鈥淲e are seeing the odd scheme starting to come back in the regions, but obviously there is the public sector issue.鈥�

Meanwhile turnover at its London fit-out division edged up 4% to 拢170m although an increasingly competitive market meant it suffered from a lower profit margin of 1.9% (2009: 2.6%).