ISG engineering boost offsets UK construction woes

ISGConstruction services company ISG has today reported that it is trading in line with expectations in its new financial year to date.

The firm said a strong performance in its UK Fit Out and Engineering Services arms has offset weakness in its UK Construction unit.

ISG said its order book to the end of October increased 10 per cent year-on-year to GBP1.01 billion, up from £915 million a year earlier, with £770m due for delivery in the current financial year to June 2015.

A trading update from the firm today said: “New contract wins in UK Construction continue to be achieved on better terms and at improved margins.

“However, the 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 eighteen 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.”

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