Firm says profit down 80% but forward order book at record level
ISG became the latest contractor to say its 2020 numbers have been shredded by covid with the firm reporting pre-tax profit down last year by close to 80%.
The firm behind the fit-outs of new headquarters buildings for US tech giants Facebook in King鈥檚 Cross and Apple at the Battersea power station redevelopment said profit slumped to 拢8.9m last year from 2019鈥檚 拢44.2m. Revenue was down 23% to 拢2bn although its forward order book was up 拢100,000 to a record 拢1.5bn.
The division which took the biggest hit was its engineering services business, which includes its science and health and datacentre sectors, with income here falling 63% to 拢293.3m with underlying profit slumping to 拢6.8m from 拢27.7m.
Income at its construction arm was up 23% to 拢691m but underlying profit was off 60% to 拢1.9m as the lockdown and the cost of implementing social distancing measures took its toll.
Its biggest division, fit-out, fared better with turnover down 15% to 拢1.04bn and underlying profit slipping 6% to 拢30.9m.
UK fit-out work fell 22% to 拢651.5m as the firm said several projects had been delayed into 2021. But it added: 鈥淲hile there is no doubt the role of the office will change, we are not seeing a slowdown in that market.鈥�
Around half of fit-out鈥檚 income is from overseas with the firm saying more than 拢200m of its revenue now comes from Germany and Spain. It said the growth in Europe was down to large-scale office projects and a growing volume of landlord direct projects.
The accounts also show ISG was handed 拢6.1m in government grants from various countries for covid assistance given to employers.
It said that the outstanding amount in directors鈥� bonus payments, deferred last year because of the pandemic, would be paid this year and amounted to 拢7.2m.
The amount paid out by the firm for redundancies 鈥� classed in the accounts as termination payments 鈥� went up from 拢2.6m to 拢4.4m.
Chief executive Paul Cossell said a good performance from the business in the past few years and helped the firm cope with the pandemic and lockdowns.
He added: 鈥淔our years of consistent profitability and growth provided the financial and structural resilience to weather an unprecedented period of market uncertainty and emerge with a record forward order book.鈥�
The firm鈥檚 net cash position at the end of last December was 拢101.5m, down from 拢116.9m in 2019.
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