Contractor aims low as it announces 43% rise in pre-tax profit and plan to tackle credit crunch
David Lawther, chief executive of ISG, says the company will place more emphasis on small-scale fit-out jobs as the credit crunch continues.
Lawther, speaking after announcing a 43% rise in pre-tax profit to 拢5.8m for the six months to 31 December 2007, said ISG would respond to the downturn by diversifying to widen its customer base.
Turnover in the core fit-out market fell from 拢164m to 拢161m over the half-year.
He said: 鈥淲e鈥檝e grown the contribution from fit-out jobs under 拢1m from zero to 25%. As some of our rivals have captured bigger and bigger jobs we have gone the other way.鈥�
He said the fit-out division would maintain its level of activity although its order book had fallen from 拢208m to 拢182m over the second half of 2007.
Overall turnover rose 27% from 拢411m to 拢521m, largely because of ISG鈥檚 London building division and its regional contracting businesses.
黑洞社区 work in London increased from 拢95m to 拢140m and revenue from regional construction rose from 拢94m to 拢136m.
Lawther said: 鈥淲e recognised that we were a one-legged animal and it was a logical process to spread the number of limbs in terms of geography and sectors.鈥�
He said there were no plans to acquire UK regional contractors and the business would grow at about 5% with a focus on the public sector.
The firm鈥檚 emphasis on overseas expansion pushed Asian turnover from 拢22m to 拢30m and Europe work from 拢3m to 拢10m.
Lawther said he expected acquisition-led growth in Asia this year. He said: 鈥淚鈥檇 like a bigger presence there and we鈥檙e having a number of conversations at the moment.鈥�
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