ISG reports record profit as revenue hits £1.7bn
Multidisciplinary construction firm ISG has reported a revenue of £1.7bn and increased profit in its latest annual results, described as the company’s “best ever financial performance” by chief executive Paul Cossell.
The contractor, which has offices in Chorley, Liverpool and Manchester, reported a revenue of £1.71bn for the year to 31 December 2017, up from £1.33bn for the 10 months to 31 December 2016.
It also reported an underlying pre-tax profit of £28.2m, up from £25.5m in its previous reporting period. The results are ISG’s second set of financials since it was taken private by US investor Cathexis in 2016.
Construction was the stand-out performance in terms of revenue at £480.1m, up from £378m. Projects the contractor is working on in the region include Ion Developments’ £39m Lime Street regeneration; Rhyl’s new £15m waterpark; and seven different schools in Greater Manchester worth a combined £25m.
The construction division reported an underlying pre-tax profit of £7.8m, up from £7.6m.
Fit-out also saw revenues rise to £395.9m, up from £319.3m, making it the group’s second-largest division, while retail revenues increase to £263m, up from £181m.
Retail projects the group is delivering include an £11m food hall in Manchester’s Arndale Centre, while the fit-out and construction businesses are bidding for the overhaul of Liverpool’s Echo Building into offices, a hotel, and retail.
Despite seeing underlying profit increase, the group did experience a number of exceptional losses in the year, including £2.2m for the cost of closing operations in Italy, China, and Qatar; and a £2.3m loss for the closure of its London retail office, which was consolidated into the group’s head office last year.
There were also £700,000 in costs associated with Cathexis’ acquisition of the company, and restructuring costs of £1.9m. The group’s restructure following its acquisition was completed last year.
Earlier this year, the group relocated its Manchester office from Exchange Quay to MediaCity’s Tomorrow building, taking 8,500 sq ft on a 10-year lease.
Regional director Paul Munro said the North West business was due to hit a turnover of £80m this year, and was targeting a revenue of more than £100m by 2022.
Commenting on the results, chief executive Cossell said: “Reporting on our best ever financial performance is a key milestone in ISG’s history and a real testament to an outstanding team effort from every single person within our organisation.
“We have a clear strategic vision and an absolute focus on playing to our core strengths, expertise and specialisms to ensure we do the very best by our customers and our people.”
