10th Sep 2013 11:19
LONDON (Alliance News) - ISG PLC Tuesday said pretax profit increased 102% for the first half, reflecting a strong performance across the business.
The construction services company posted pretax profit of GBP2.5 million for the period ended 30 June, up from GBP1.2 million last year. However, revenue remained flat at GBP1.28 billion.
The company's UK Fit Out and Engineering services division saw revenue increase to GBP287.5 million, from GBP202.1, of which GBP88 million related to overseas engineering services activity compared with no such revenue last year.
Revenue for the Middle East and Asia also increased to GBP26.1 million, from GBP20.7 million in 2012.
The UK retail arm was affected by the UK economy, so while revenue was in line with expectations at GBP267.3 million, down from GBP322.8 million, an improved operating margin of 2.1% led to a rise in operating profit to GBP5.5 million, compared with GBP5.0 million in 2012.
Revenue also declined in Asia and Continental Europe.
ISG said its UK Construction business continued to operate in a challenging market and as predicted, revenue declined to GBP537.9 million, from GBP553.6 million, although there was a slight improvement in margins leading to improved operating profit of GBP1.1 million up from GBP0.7 million in 2012.
ISG said its order book was 12% ahead at GBP845 million compared with GBP760 million in 2012, of which 20% is overseas.
Net cash increased to GBP36.1 million, from GBP25.4 million, while the company was able to raise net proceeds of GBP7.4 million to fund the acquisitions of Brazilian refurbishment business ACE and fit-out firm Tecton in Germany.
These deals attracted a number of new institutional shareholders, ISG said.
"In the UK, we have seen signs of improvement in the London office fit-out market and have maintained our market leading positions in the office fit out and retail sectors," Chief Executive David Lawther said in a statement.
"We have had considerable success in the data centre sector. Our UK Construction business has increased its level of repeat work through its focus on key customers and frameworks," Lawther added.
The board declared an unchanged interim dividend of 9.00 pence per share.
ISG shares were trading at 211.16 pence Tuesday morning, up 10.16 pence or 5.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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