ISG suffers in the first half

Interior Services Group (ISG) reports that trading in the last six months of 2004 remained difficult and delays in project starts resulted in a cut in the volume of work.

ISG’s interim financial results published this morning, covering the six months to 31 December 2004, show a major cut in pre-tax profit to £1.2m compared with the £3.4m figure in the same period of the previous year. Turnover was £30m down at £160m.

Chief executive David King said: "ISG is in a recovery phase. Having passed the low point in our cycle, volumes will start to increase."

King revealed that strategic planning for ISG’s future is to position ISG for organic growth as a national construction services business; to look hard at making an entry into the PFI schools market; to expand its overseas businesses; and to track down acquisition targets.

"With workload in London representing 85% of our UK workload, there is growth potential in the regions," said King. "To develop there, we are expanding our service to include new build and refurbishment as well as fit-out.

"Under new leadership, the regional business will operate initially in a Manchester/Leeds/Birmingham triangle [from] our existing office in Manchester. We closed our Reading office in January."