Revenue for the half-year was £659m (2011: £623m) and pre-tax profit was £2.2m (2011: £2.3m). Underlying profit before tax was up 4% to £3.8m.
Much of the growth came from its UK Construction division, where revenue increased by 18% to £280m (2011: £237m). This was on the back of London 2012 Games overlay works contract. Operating profit for this division was £700,000.
ISG’s construction order book has increased by more than 8% to £409m (2011: £377m), with 65% from the private sector. Two years ago the work was two-thirds public sector.
The company’s UK Fit Out division also grew revenue – to £119m (2011: £92m) – but operating profit slide to £2.0m (2011: £2.3m).
ISG said that the London office fit out market remained competitive, with project sizes smaller, but larger scale projects were beginning to re-emerge.
There was increased revenue from the growing engineering services market.
ISG’s UK Fit Out order book is up 83% to £170m (2011: £93m).
The office fit out business in France and Germany also performed well, but Italy was weaker.
The UK Retail division suffered a drop in both revenues and profits, as expected. Operating profit was £2.6m (2011: £3.0m) on revenue of £164m. The order book here is also reduced at £102m (2011: £148m) as retailers pull back on investments.
Chief executive David Lawther said: "ISG has delivered an improved performance and growing order book despite the continuing market challenges in Europe. In the UK, we have maintained our market leading positions in the office fit out and retail sectors, while our construction business has increased its level of repeat work through its focus on key customers and frameworks. We have continued our progress into the engineering services and hospitality sectors, securing another major project in the period. Overseas, we continue to enhance our reputation and anticipate seeing growth in the second half.
“We will continue to manage our cost base, to target growth sectors and to invest in our overseas businesses."
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