ISG鈥檚 UK Construction division will make a loss again this year and knock 拢5m off group results.
The UK Construction division made an operating loss of 拢18.1m in the year to 30th June 2015 on 拢446m revenues. , CEO David Lawther said: 鈥淲e believe that the poor performance and painful restructuring of the UK Construction division is now behind us, and with the outlook for most of our key markets remaining strong, we expect a much improved overall performance for the group in the year ahead."
However, it a trading update today, just three months on, that optimism has dissipated.
The board said: 鈥淲e continue to work on the recovery plan for UK Construction. Despite the many positive steps we have taken, we have continued to experience disappointing project outcomes on some older contracts.聽 In addition, with margin and risk control remaining our priority rather than volume and some customers delaying the start on site of their projects, volumes this year will be below our expectations with profit deferred to later periods.聽 As a consequence, this division will be loss making this year and will impact the group results by up to 拢5m.鈥�
All other divisions are trading in line with expectations.
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