ISG delivers in line trading

5th Dec 2014 10:01

Construction services group ISG cheered with news that its overall trading since the start of the financial year has been in line with expectations.The company said that it has seen a particularly strong performance by its UK Fit Out and Engineering Services business, which offset continuing difficult trading conditions in UK Construction, which will incur a loss in the first half of the financial year.The loss is due to the commercial pressures on many of the older contracts entered into more than 18 months ago that are now approaching final completion, the group explained. At the end of October, the total order book had increased by 10% to £1,010m, of which £770m is for delivery in the current year.The balance sheet remained "robust" and the firm expects a net cash position of around £35.0m at the year-end, up from £33.3m at the year-end. "Our UK Fit Out and Engineering Services business goes from strength to strength, running ahead of our expectations in terms of turnover and profit for the year," ISG said."We are currently working on nine major (>£15m) London office fit out schemes with a combined value of over £300m. Our engineering services offer continues to grow as we have secured further data centre contracts in the Nordic region, as well as elsewhere in Continental Europe and the UK. "Our UK Retail business continues to expand its order book in both the retail and hospitality sectors and is on track to exceed expectations for the year." ISG has seen an improved performances from both its Middle East and Asian operations, while in Continental Europe the subdued market conditions continued, resulting in a decline in activity levels, particularly in France."Our recent Spanish acquisition is showing promising signs as confidence starts to return to that economy and we anticipate the business making a significant contribution to our profits in Continental Europe this year," it continued.The group said it has a strong platform for future growth from which to continue to take advantage of new market opportunities."We anticipate the results for the full year being in line with the board's expectations," it added.