However, ISG鈥檚 UK Construction business is to be restructured to strip out costs and improve margins.
For the year ended 30 June 2013, underlying profit before tax increased to 拢8.5m (2012: 拢7.5m) on revenue of 拢1,284m (2012: 拢1,281m).聽 Reported pre-tax profit was 拢2.5m (2012: 拢1.2m).
UK Construction accounted for 拢538m, or 42%, of total revenue but had an operating profit margin of just 0.2%. 聽The UK Construction division鈥檚 pre-tax profit reached 拢1.5m, up from 拢1.2m in 2012.
鈥淎s market conditions remain challenging we are in the process of reorganising our Construction business into three regions in order to optimise operational efficiency,鈥� said CEO David Lawther. 鈥淭he order book for our UK Construction business is in line with prior year at 拢391m (2012: 拢390m), of which 拢338m is for delivery in the current financial year (2012: 拢335m).聽 We would anticipate revenue for the current financial year being slightly below prior year, however we are targeting to improve margins.鈥�
Fit-out accounted for 拢288m and retail customers for 拢267m, with 1.7% and 2.1% operating margins respectively. The forward order book up in Fit-out & Engineering Services is up by 89% from 拢111m a year before to 拢210m.
UK operations generated turnover of 拢1,093bn and 拢12.5m profit before tax.
Net cash at year-end was up 42% at 拢36.1m (拢25.4m 2012).
A share placing in June raised 拢7.4m net to support international expansion, with acquisitions of ACE in Brazil and Tecton in Germany.
鈥淥verseas, our businesses are performing well and we are entering new markets and strengthening our existing presence through selective acquisitions,鈥� Mr Lawther added.
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