Ongoing losses on four live contracts due to subcontractor insolvencies
ISG has said it will incur a further 拢10.5m in costs in closing its luxury London residential business and Tonbridge office.
In a trading update the firm said winding down the two operations would cost it a further 拢5.5m, and 拢5m, respectively.
ISG said the provisions cover the 鈥渦nexpected cost overruns and delays on the remaining four live projects, unanticipated sub-contractor insolvencies and a mixed outcome of final account settlements and adjudication decisions, all of which have recently arisen鈥�.
ISG previously made 拢17m of provisions for the two closures in a 拢7m profit warning in February.
ISG said today鈥檚 provisions would not impact on overall expected profit, thanks to better than expected performance in the company鈥檚 fit-out, engineering services and retail businesses in the UK and overseas.
ISG added: 鈥淲e believe the poor performance and painful restructuring of the UK Construction division is now behind us.鈥�
The firm also announed it had won 拢80m of commercial office schemes over the past three months, including a 拢24m office development in Stockley Park, near Heathrow, and a 70,000 sq ft fit-out for insurer Zurich at 70 Mark Lane in the City of London.
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