1st Dec 2015 08:21
LONDON (Alliance News) - Construction services company ISG PLC on Tuesday said trading for its UK construction arm has been disappointing and while the remainder of its business will meet its expectations for the full year, that division will not.
ISG said trading conditions for the majority of its businesses has been robust in the first five months of its financial year to the end of November, with particularly strong performances from its UK fit out and engineering services arms.
But its UK construction business has had a disappointing period, with weak project outcomes on some legacy contracts and with volumes set to be below its expectations due to a continued focus on margins and risk control. This will result in some revenue being pushed into the 2017 financial year and will mean the UK construction business is loss-making in the financial year to the end of June 2016.
ISG shares were down 25% early Tuesday to 155.00 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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