Contractor looks to conserve resources to push international growth
ISG will reduce dividend payments to shareholders as it looks to conserve resources to push international growth.
The contractor will pay a final dividend of 4.6p 鈥� down from 10.7p 鈥� when it publishes its full year results for the year ended 30 June 2012 in September.
This will make the total dividend for the year 9.0p, down from 15.1p for 2011.
ISG explained in a trading statement: 鈥淭he Group will benefit from conserving its internal resources to continue to support the growth of its overseas businesses.鈥�
The firm added that trading remained 鈥渂roadly in line with the revised management expectations鈥� announced at the time of its profit warning in January.
ISG said its UK business had maintained revenues 鈥� but margins had been impacted 鈥� while overseas revenues and margins both improved.
The firm said it is maintaining market share in the UK fit-out market, but that it had seen a reduction in the size of jobs.
The firm鈥檚 construction business grew over the full year, in part thanks to a boost from Olympics work, where it fit-out the Olympic stadium.
ISG鈥檚 south west construction division also returned to profitability in the last quarter after a restructure.
The firm鈥檚 order book stands at拢760m, up slightly on 拢750m this time last year.
The statement continued: 鈥淚n summary, in the UK in the short term we anticipate that trading conditions will continue to be difficult.
鈥淲e are looking to target areas where we see growth opportunities, particularly in the data centre, hospitality, high-end residential and international retail markets.
鈥淥utside the UK, we continue to see robust pipelines and strong demand for our services from our international clients.鈥�
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