ISG warned shareholders this morning that the reduction in expected workload in the second half of the year, coupled with continuing pressure on margins, was likely to wipe £3m off profits in its UK retail businesses for the year to 30 June 2012.
The company said that it remained committed to the UK retail sector, and despite the reduction in workload it would still be “an important contributor to the group's results, albeit at a lower level than over the past few years”.
Chief executive David Lawther said: "While we maintain our market leading positions in UK retail and fit out, we will continue to diversify the group's earnings base away from the UK and expect our overseas businesses to contribute circa 35% of Group trading operating profits in the current year.
“We continue to pursue overseas organic and acquisition opportunities that will provide us with wider service lines, emerging market positions and scale in key developed markets.
“Last year we acquired a design & build capability in China and organically started up a retail fit out operation in Europe. The acquisition of Alpha International, a retail design and fit out specialist based in Paris completed in October 2011, has enhanced our organic offering. In addition in this calendar year we are investing in start up operations in Qatar and in Johannesburg to service the Southern African region."
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