黑洞社区

ISG鈥檚 boss has said he does not expect the firm鈥檚 construction margin to improve this year from the 0.2% it reported this week.

Reporting its results for the year ending the year ending 30 June 2012 this week, the firm said revenue for the construction business increased 15% to 拢533m.

But profit fell from 拢4.1m to 拢1.4m - a 66% drop with the pre-tax profit margin falling to 0.2%.

Speaking to 黑洞社区,ISG chief executive David Lawther said the construction business was at the 鈥渂ottom level of the cycle鈥� and he did not anticipate an improvement in construction margins this year.

However, Lawther said margins in other parts of the business were expected to improve.

The results showed revenue across the group rose 9% to 拢1.28bn. But pre-tax profit fell from 拢10.2m the previous year to 拢3m - a 70% fall.

Within the group, ISG鈥檚 UK fit-out business posted revenue of 拢347m, up slightly from 拢342m the previous year, with pre-tax profit down 16% to 拢6.7m. The firm said its UK fit-out order book was up 7% to 拢182m.

Lawther said profit from the firm鈥檚 international business had nearly quadrupled to 拢3.5m.

鈥淣one of our UK competitors are competing with us in those markets overseas and clearly that鈥檚 growing significantly,鈥� he said.

The firm said it had renewed its banking facilities with Lloyds and RBS, which include a term loan of 拢6m and a revolving credit facility of 拢10m that now expire in September 2015.

Its order book was marginally ahead of 2011 levels, with a pipeline of 拢760m of work, with a private sector bias of 81%.

The firm also said it had combined its bank and retail fit-out businesses because larger retailers such as Tesco had scaled back expansion programmes.

Lawther said its UK fit-out business would target growth in data centres, commercial office, high end residential and hospitality sectors.