Interim results for the period ended 31 December 2014

ISG PLC("ISG" or "the Group")

Interim results for the period ended 31 December 2014

Results impacted by performance of older contracts in UK Construction division 
Strong performance from UK Fit Out and Engineering Services, UK Retail and International Equity fund raising undertaken of £16m.

ISG plc, the international construction services group, today announces its interim results for the period ended 31 December 2014.

2013 2014
Revenue 1,2,3 £819m £682m
Underlying (loss)/profit before tax 1,2,3 (£7.2m) £7.8m
(Loss)/profit for the period 2,3 (£20.8m) £1.7m
Net cash position £38.3m £33.3m
Underlying basic earnings per share2,3,4 (15.01p) 15.47p
Basic earnings per share2,3,5 (31.93p) 8.87p
Interim dividend per share Nil 4.54p

1 from underlying items and continuing operations (Notes 3 and 4)
2 restated for the classification of the Tonbridge operations as discontinued operations (Note 6)
3 restated for the classification of the London Exclusive Residential operations as a business to be discontinued within non-underlying items (Notes 1 and 4)
4 from earnings attributable to owners of the company from underlying items (Note 8)
5 from earnings attributable to owners of the company (Note 8)

 Group Highlights

  • Strong performances from UK Fit Out and Engineering Services, UK Retail and International divisions
  • UK Construction division generated a loss of £16.0m as a result of provisions and losses on contracts entered into more than 18 months ago, but now stable with better contracts secured
  • Order book in line at £967m (2013: £968m), of which £655m is for delivery in current year (2013: £641m). Since period end £148m of data centers business secured
  • Net cash balance of £38.3m at 31 December 2014 (2013: £33.3m)
  • Fund raising of £16m undertaken with institutional investors to strengthen equity base
  • Interim dividend passed; in the absence of unforeseen circumstances, the Board expects to pay a final dividend of 4.91p (final 2014: 4.91p)
David Lawther, Chief Executive Officer, said:

“We have taken decisive steps to reform our UK Construction division and the issues caused by older contracts will be closed out. Higher quality and larger contracts are now in progress. Elsewhere, our UK Fit Out and UK Retail businesses continue to lead their markets and perform very well. 

We plan further progress for our Engineering Services business as it continues to build its reputation across Europe. Overseas, we are capitalising on increased market activity and a growing reputation. As previously flagged, we expect the operational performance of the Group in the second half to be in line with the Board’s expectations. We anticipate returning to our previously expected growth path in 2015/16"

3 March 2015


Download the full Interim Results for the period ended 31 December 2014 (pdf)

Download the Interim Results for the period ended 31 December 2014 presentation (pdf)