ISG’s UK Construction business saw its revenues reduced by 17% in the first half to £234m (2012: £280m), due to the previous year’s performance being inflated by the London 2012 Games.
The whole group, however, grew its revenues by 8% to £708m (2012: £659m) and underlying profit before tax increased by 29% to £4.9m (2012: £3.8m). Reported pre-tax profit was up 7% to £2.4m (2012: £2.2m).
ISG’s Middle East revenue was up at £13m (2012: £10m), with underlying operating profit improving to £0.1m (2012: loss of £0.3m).
In Asia revenue increased to £42m (2012: £35m), with operating profits also up at £1.1m (2012: £0.7m).
Chief executive David Lawther said the company’s strategy was working. “There is a marked improvement in confidence in our core London office fit-out market, where we are strategically positioned as the clear market leader,” he said.
“We have also maintained our leadership position in the UK retail market, and this sector is a focus for growth overseas. Additionally, our strategy to diversify our business during the economic downturn has underpinned the development of significant new revenue streams. For example, the investment we have made in developing our Engineering Services business has enabled us to establish our position as an international provider in the data centre sector. The international hospitality sector is also providing a new revenue stream and we anticipate continued growth in this area going forward.”
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