ISG PLC Trading Update (4717H)
01 December 2015 - 6:00PM
UK Regulatory
TIDMISG
RNS Number : 4717H
ISG PLC
01 December 2015
ISG plc
Trading Update
ISG plc ("ISG" or the "Group"), the international construction
services group, today issues an update on trading for the period 1
July to 30 November 2015, ahead of its AGM which will be held on
Friday 4 December.
The Board is pleased to announce that since the start of the
financial year the Group has seen good trading conditions for the
majority of our businesses with a particularly strong performance
by our UK Fit Out and Engineering Services division. Trading in UK
Construction however has been disappointing. We anticipate the
results for the full year being in line with the Board's
expectations for all divisions except UK Construction. The Board
also expects a greater second half weighting to this year's
results.
We 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.
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. As a consequence, this
division will be loss making this year and will impact the Group
results by up to GBP5m. The Board is resolute in its ambition to
refocus this division on core sectors, regions and skills.
Work on closing out the final projects on discontinued
activities is proceeding in line with our expectations. We expect
all projects to have reached practical completion by December 2015
and for the vast majority of outstanding commercial issues to have
been settled by the financial year end.
At the end of October, our total order book had increased by 12%
to GBP1,130m (October 2014: GBP1,010m) of which GBP840m (October
2014: GBP770m) is for delivery in the current year. The balance
sheet remains robust and we anticipate a net cash position in
excess of GBP50.0m as at 31 December 2015 (2014: GBP38.3m).
As mentioned in our preliminary results, the Board expects to
resume payment of an interim dividend and therefore, in the absence
of further unforeseen circumstances, would expect to pay an interim
dividend of 3.8p (2015:0p) at the half year.
In our UK Fit Out and Engineering Services division, we are
currently working on six major (>GBP20m) London office fit out
schemes with a combined value of over GBP300m. Our engineering
services offer continues to grow as we have secured further data
center contracts in Continental Europe and the UK.
Our UK Retail business continues to experience growth and
opportunity with its retail banking clients, whilst activity levels
with food and high street retailing clients remains stable. As
market leader, it is benefitting from being in the forefront of
rapid innovation in retail formats.
In respect of our overseas businesses, overall we are seeing
performance in line with our expectations, with robust order books
and pipelines across our core sectors of office, retail,
hospitality and engineering services and with a normal seasonal
second half bias.
Our ongoing focus on specialising in key market sectors provides
the Group with a strong platform for future growth from which to
continue to take advantage of new market opportunities.
Shareholders will next be updated on the Group interim results
for the six months to 31 December 2015 on 8 March 2016.
1 December 2015
ISG plc
David Lawther, Chief Executive Officer 020 7392 5250
Jonathan Houlton, Group Finance Director
Instinctif
Matthew Smallwood, Helen Tarbet 020 7457 2020
Numis Securities Ltd
Nominated Advisor: Michael Meade 020 7260 1000
Corporate Broking: Ben Stoop
This information is provided by RNS
The company news service from the London Stock Exchange
END
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