East Anglia: Recovery in key markets boosts profits at construction group ISG

International construction services group ISG, who UK business includes a regional arm based in Ipswich, today reported a 27% increase if profits for the year to June 30.

ISG posted total revenues of £1.483billion, up 19% from £1.245bn the previous year, with underlying pre-tax profits rising from £9.1million to £11.5m.

Bottom-line pre-tax profits more that doubled, from £3.0m to£6.8m, largely reflecting one-off charges in the previous year and increased profts from joint ventures.

Basic earnings per share grew by 48% to 13.53p, or by 4% to 23p on an underlying basis. The total dividend will rise by 5%, from 9p to 9.45p per share.

ISG said its improved performance had been driven by recovery in key markets and new growth sectors.

Operating profit from UK fit out and engineering services nearly doubled, the UK retail business maintained in market-leading position and UK construction also saw an improvement, although trading conditions remained “difficult”.

The group added that its order book was 18% ahead, at £1.011bn against £854m a year ago, of which £926m was for delivery in the current year, up from £801m.

ISG chief executive David Lawther said: “I am delighted ISG has delivered an improved performance and increased order book.

“Our diversification strategy, combined with the recovery of our traditional UK markets, positions the company for continued growth.

“Overseas, our businesses are benefiting from a growing reputation. We anticipate further improvement in our results in the coming year.”