Revenue from continuing operations in the six months to 31 December 2011 was steady at 拢623m (2010: 拢621m) but adjusted pre-tax profit was down form 拢5.4m last time to 拢3.6m.
ISG鈥檚 UK Construction division saw a small decline in revenue to 拢227m (2010: 拢237m) but margins remained under pressure and 鈥渞esidual contract issues鈥� in the southwest continued to impact profits. 聽Operating profits for the period were thus eroded to 拢0.1m (2010: 拢2.0m).
The construction order book at 31 December 2011 was 拢359m (2010: 拢408m).
Operating profit was also down in the food retail division, from 拢2.3m last time to 拢1.3m this time, on revenue marginally ahead at 拢110m (2010: 拢107m). 鈥淲ith confidence across the sector in the UK generally lower and with an ongoing pressure on margins we believe that results in this business will continue to be affected in the second half,鈥� the company warned.
Revenue from the UK fitout division for the first half fell 9% to 拢176.6m (2010: 拢193.3m) but operating profit was up from 拢3.3m to 拢3.4m.
Overseas operations grew during the period and now account for 27% of group trading operating profit.
In mainland Europe, revenues grew 28% to 拢53m (2010: 拢41m) and operating profit rose to 拢1.3m (2010: 拢0.1m).
Revenues from Asia were up 45% to 拢47m (2010: 拢33m).聽 Operating profit was 拢0.7m (2010: 拢0.2m).
In the Middle East, revenues were steady at 拢10m (2010: 拢10m) but delays to the start of work in Abu Dhabi led to a loss of 拢0.3m (2010 profit: 拢0.2m).
CEO David Lawther said: "In the UK, we are pleased to have maintained our market leading positions and further deepened our relationships with blue chip customers in a competitive market.聽 Our overseas businesses are continuing to grow strongly, benefiting from these relationships.聽 We have completed a number of high profile projects further enhancing our reputation overseas.
"Our market leadership in the corporate office fit out, food retail and retail fit out sectors continues to deliver repeat business and a reliable order book, which will enable us to benefit from any upturn particularly in the UK.聽 The slowdown in the UK retail sector has affected our short term expectations of our retail business. Overseas, we will continue to invest in our growth organically and, as opportunities arise, in bolt-on acquisitions.聽 We remain confident that our resilience and our clear strategy will generate increased value for our shareholders."
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