ISG has posted a pre-tax profit of 拢8.8m for the year ending 30 June 2010, a fall of a quarter on the previous year.
Revenue was also down at 拢972m, compared to 拢1.05bn in 2009.
The group order book in June stood at 拢742m (2009: 拢822m), and 70% of it is private sector (2009: 68%)
Net cash at 30 June 2010 stood at 拢31m (2009: 拢32.1m.).
ISG has reorganised its construction, retail and fit-out businesses into three streams: multinational corporate office and retail fit out customers; national food retail customers; and UK construction customers.
It said the change to its structure, which includes the refocusing of our management teams on the three offers, is 鈥渄esigned to make it easier for customers to engage with the right part of the business鈥�.
Operations review
In London Fit Out, ISG said revenue increased 4%, 鈥渋ndicating a stabilisation of the market鈥�.
Operating profit declined to 拢3.3m (2009: 拢4.3m) and margins to 1.9% (2009: 2.6%).
Its order book stands at 拢122m (2009: 拢159m), but the firm detected 鈥渨ith continuing signs of improvement in pipeline in the smaller end fit out market鈥�.
ISG's London Construction business increased operating profit 119% to 拢2.2m (2009: 拢1m) on revenue of 拢154m (2009: 拢217m).
This was due to 鈥渢ight management of costs, together with better buying margins and a different mix of work鈥�, the firm said.
The order book declined to 拢114m (2009: 拢188m), reflecting a change in mix towards a higher proportion of smaller sized projects.
In Regional Construction, ISG posted an operating profit of 拢3.5m (2009: 拢3m) on revenue of 拢338m (2009: 拢367m).
Some 62% of its revenue is with public sector clients (2009: 59%), the majority in the education sector and frameworks.
The order book stands at 拢276m (2009: 拢286m), but the firm anticipates 鈥渟ome softening in public sector work load post the government's spending review鈥�.
The retail businesses, ISG Pearce and ISG Cathedral, maintained operating profit at 拢6.7m (2009: 拢6.7m) on revenue of 拢192m (2009: 拢208m).
Almost half (49%) of revenue is in the food sector and 36% in retail banking.
The firm reported some 鈥渆arly signs of an improvement in high street retail sector鈥�.
Its order book looks healthy at 拢163m (2009: 拢135m).
Overseas, ISG made an operating loss of 拢200,000 in Europe (2009: profit 拢1.4m) on increased revenue of 拢33m (2009: 拢29m).
In the Middle East, joint venture business continued to make a small loss of 拢0.3m (2009: 拢0.4m), predominantly due to the poor performance of the joinery division, which ISG is now selling to its partner.
The Asia business delivered an operating profit of 拢1.9m (2009: 拢2.2m) on revenue of 拢86m (2009: 拢60m).
Outlook
David Lawther, chief executive, said: "While there is little doubt that our markets will remain highly competitive over the coming year, we are seeing a recovery in the spending programmes of our private sector customers.
鈥淥ur results show the continued resilience of the Group and our strategy places us well to resume the growth path we demonstrated leading up to the global economic crisis."
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