30th Jun 2014 11:20
LONDON (Alliance News) - Construction services group ISG PLC Monday said underlying trading for the year ended June 30 will be in line with management's expectations, despite its UK Regional Construction business continuing to face challenges within its market.
ISG is currently restructuring and reducing its UK Construction business into four regions focusing on repeat customers and framework in core sectors. To complete this restructuring, ISG said it has taken the decision to discontinue activities from its office in Tonbridge, which will result in a loss from discontinued operations of GBP3.5 million in the current financial year.
On a more positive note, ISG said its UK Fit Out and Engineering Services business has seen significant revenue and profit growth in the second-half of the year. In addition, despite the difficult retail marketplace, the company said its UK Retail business made progress.
In Continental Europe, ISG said its performance mirrored market conditions, with the German office fit out and French retail fit out businesses performing well.
"Market conditions elsewhere are more difficult, with particular sectors and geographies trailing the economic recovery in the UK," it said.
Overall, ISG said its current order book is currently 25% higher at GBP1.05 billion compared with GBP843 million a year earlier, of which GBP820 million relates to the financial year ended June 2015.
ISG shares were quoted down 0.8% at 301.60 pence Monday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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