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Mon September 21 2020

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ISG is losing money from construction

5 Dec 14 The construction division of ISG is set to report a loss for July to December because of cost inflation hitting contracts priced before market recovery began.

Earlier this week ISG was appointed to build a new Racquet Centre for The Hurlingham Club in London
Earlier this week ISG was appointed to build a new Racquet Centre for The Hurlingham Club in London

ISG shareholders meet for their annual general meeting today and will hear that although the UK Fit Out and Engineering Services businesses are performing strongly, the UK Construction business will make a loss for the six months to 31st December 2014.

In a trading statement, ISG said: “The [construction] business will incur a loss in the first half of this financial year due to the commercial pressures on many of the older contracts entered into more than 18 months ago that are now approaching final completion.  The management of the business is focused on bringing these contracts to finality in the second half.”

Overall trading since the start of the financial year has been in line with expectations, the board said, and new contract wins in UK Construction were being secured on better terms and at improved margins.

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MPU
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