Interior Services Group saw profits fall by 61 per cent and its turnover drop by 14 per cent in the second half of 2009.
In the six months ended 31 December 2009, the contractor posted a turnover of £484 million compared with £562 million in the same period the previous year and saw pre-tax profit fall from £6.3 million to £2.4 million.
The group’s order book at December was £780 million - compared with £950 million in 2008 - of which £442 million is for delivery in the current financial year and £320 million for the next financial year.
ISG’s London division recorded a 39 per cent increase in profits to £3 million from £2.2 million in the second half of 2008 despite a £40 million fall in turnover.
Its regional construction division doubled its operating profit to £2.6 million compared with £1.3 million in the second half of 2008.
Meanwhile ISG’s European division saw a 29 per cent fall in revenue to £13 million from £18 million in 2008 and posted a loss of £0.9 million, citing cancellations or delays by blue chip clients due to the current economic climate.
It added that it still expects to make a profit from this division in light of its £29 million order book.
ISG chief executive David Lawther said: “I am pleased to announce a robust set of results despite the difficult trading environment and an increased interim dividend.
“Whilst our markets remain highly competitive, we have weathered the worst of the fallout from October 2008 and as these results demonstrate we are emerging in good health. We now feel confident that the group is well placed to resume the growth path demonstrated from 2004 through to 2008 as the markets recover. We will continue to pursue organic growth and acquisition opportunities.”
The fall in pre-tax profit was increased by an exceptional item of £1.9m, representing ISG’s estimate of the fines and legal costs resulting from Office of Fair Trading’s cover pricing investigation into two subsidiaries - Propencity Group and Pearce Construction, prior to ISG’s ownership.