{"id":16184,"date":"2023-04-27T22:18:26","date_gmt":"2023-04-28T05:18:26","guid":{"rendered":"https:\/\/essential.construction\/news\/isg-margins-squeezed-as-orders-hit-record-1-9bn\/"},"modified":"2023-04-27T22:18:33","modified_gmt":"2023-04-28T05:18:33","slug":"isg-margins-squeezed-as-orders-hit-record-1-9bn","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/isg-margins-squeezed-as-orders-hit-record-1-9bn\/","title":{"rendered":"ISG margins squeezed as orders hit record \u00a31.9bn"},"content":{"rendered":"

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ISG\u2019s Fit-out and Construction operations demonstrated strong resilience against a challenging global economic backdrop in 2022 maintaining group revenue at a record high of \u00a32.2bn.<\/p>\n

But the challenges impacted average group operating margin which was squeezed to 0.5% from 0.83% previously.<\/p>\n

As a result reported pre-tax profit dropped to \u00a311.5m from \u00a318.5m in 2022.<\/p>\n

In his first year as chief executive, Matt Blowers saw the firm secure its largest ever job, a \u00a3600m order to deliver Sunset Waltham Cross Studios development in Broxbourne, Hertfordshire.<\/p>\n

ISG also made inroads to the biopharmaceutical sector with a \u00a3200m deal this year for a vaccines manufacturing plant on Teesside.<\/p>\n

Blowers said: \u201cOur record forward order book reflects the demand for our unique and specialist services.<\/p>\n

\u201cIn addition to our traditional sectors, we are increasingly working on hyperscale schemes in growing segments, including semi-conductors, film studios, future mobility and life sciences.\u201d<\/p>\n

Fit-out continued to dominate profit generation contributing \u00a332m, while mainstream construction produced a more modest \u00a34.8m profit from \u00a31.2bn revenue.<\/p>\n\n\n\n\n\n\n\n
ISG trading divisions in 2022<\/th>\n<\/tr>\n<\/thead>\n
<\/td>\nRevenue<\/span><\/td>\nChange<\/span><\/td>\nEBITDA<\/span><\/td>\nChange<\/span><\/td>\nOrder book<\/span><\/td>\nChange<\/td>\n<\/tr>\n
Construction<\/td>\n\u00a31.2bn<\/span><\/td>\nn\/c<\/span><\/td>\n\u00a34.8m<\/span><\/td>\n23%<\/span><\/td>\n\u00a31.3bn<\/span><\/td>\n21%<\/span><\/td>\n<\/tr>\n
Fit-out<\/td>\n\u00a3989m<\/span><\/td>\n-0.4%<\/span><\/td>\n\u00a332m<\/span><\/td>\n-9%<\/span><\/td>\n\u00a3576m<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

During 2022, the Fit-out business launched a low-carbon retrofit offer to prospective clients looking at retro-first approach to assets.<\/p>\n

ISG maintained its zero-debt status and continues to hold a healthy net cash balance of \u00a3105m.<\/p>\n<\/p><\/div>\n