Firm was bought by US private equity group two years ago

Paul Cossell

ISG turned in a record-breaking performance in 2017, its second year of ownership by US private equity group Cathexis.

The formerly listed group announced an underlying pre-tax profit for the year to 31 December 2017 of 拢28.2m, up 10.6% on 2016鈥檚 10-month reporting period, which finished in December 2016. Group turnover during the period was up 28% to 拢1.7bn.

Non-underlying items, which included spending more than 拢6m on restructuring costs and closing a number of operations overseas, meant pre-tax profit came in at 拢9.1m 鈥� a 90% hike on the 2016 figure.

ISG chief executive Paul Cossell (pictured) hailed the numbers as the 鈥渂est performance and results in our history鈥�.

Three years ago ISG issued two profit warnings within the space of 12 months, followed by a number of senior management changes the following year including David Lawther being replaced as chief executive by Cossell, who was previously boss of the firm鈥檚 fit-out operation.

Cathexis bought the business back in February 2016 for 拢85m.

The firm said more than a quarter of its 2,700 employees were women but Cossell admitted: 鈥淲e can and must do so much more to ensure the broader diversity of our workforce, particularly in senior roles.鈥�

UK fit-out activity continued to be the group鈥檚 largest contributor of profit, albeit down 8% at 拢11.1m on turnover up 24% to 拢396m. Work won during the period included a 拢130m deal to fit out the new London headquarters of investment bank Goldman Sachs.

The firm鈥檚 UK construction operation, ISG鈥檚 biggest division, posted revenues of 拢480m, up 27% and profit of 拢7.8m, a rise of 3%.

Asia, Europe and the Middle East saw revenues rise by 30% to 拢277m and profit up 53% to 拢5.8m, the only blip being the political upheaval in Catalonia impacting the group鈥檚 second half in the region.

ISG鈥檚 UK retail and Realys design businesses posted a 45% hike in turnover to 拢263m, although profit fell 16%.

The firm spent 拢2.3m restructuring Realys in early 2017 and ISG said the business 鈥渋s now profitable and we expect improved results in 2018鈥�.