4th Mar 2014 11:22
LONDON (Alliance News) - ISG PLC said Tuesday full-year underlying pretax profit jumped 29% due to growth in its UK Fit Out and Engineering Services division.
The construction services group said underlying profit before tax for the year to December 31, 2013 came in at GBP4.9 million, up 29% on the GBP3.8 million reported in 2012. Revenue for the year was GBP708 million, up from GBP659 million in the previous year.
Pretax profit for the year was GBP2.4 million, up 7% on the GBP2.2 million reported last year.
ISG said increased underlying profit has been driven by growth in its UK Fit Out and Engineering Services business, which has seen a significant increase in activity in both London office fit out and international data centre delivery in the first-half with revenue increasing by 76% to GBP210 million from GBP119 million last year. Of this, GBP107 million relates to overseas Engineering Services activity, up from GBP5 million in 2012. Underlying operating profit has improved by GBP1.0 million to GBP3.0 million.
The firm notes an encouraging shift in market conditions for the year, stating, "As anticipated in previous statements, the London office fit out market has made a strong recovery with revenue increasing by 40% as a result of the return of large-scale projects."
The company said it is currently working on six major schemes, worth more than GBP20 million each, with a combined value in excess of GBP300 million.
At 31 December 2013, the order book for ISG's UK Fit Out and Engineering Services division was GBP282 million, up from GBP170 million in 2012. Of this reading, GBP254 million is to be delivered in the current financial year.
ISG said its overall order book is currently ahead by 26% at GBP968 million, up from GBP766 million last year, of which GBP641 million is for delivery during the current year, in comparison to GBP512 million at the same point last year.
ISG said underlying basic earnings per share for the year was up 7% to 9.50 pence form 8.92 pence. On an underlying basis, basic EPS dropped 24% to 4.44 pence from 5.83 pence per share.
The firm has increased its interim dividend per share to 4.54 pence, a 3% rise on 4.41 pence in 2012.
Looking ahead, the firm anticipates continuing improvements in its key markets and expects revenue for the current financial year to be substantially ahead of the prior year.
David Lawther, Chief Executive Officer, said, "In line with expectations, ISG has delivered an improved performance and growing order book. Our strategy to develop new services such as our Engineering Services business is showing encouraging results. In the UK, some of our traditional key markets have started to improve in line with the general economic recovery and we continue to maintain market-leading positions in the office fit out and retail sectors. Our UK Construction business has invested in its planned restructuring and is starting to see an improvement in its pipeline. Overseas, we are seeing growth with most of our major markets improving."
Shares in ISG were trading down 1.67% at 295 pence per share Tuesday.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ISG.L