Problem contracts lead to ISG profit hit

摘要

ISG has issued a profit warning after a review into its UK construction business revealed several problem contracts. The contractor said it had suffered from three problem contracts over the past 18 months, as well as protracted negotiations on one large construction contract it entered into in 2012. As a result, ISG said it expects profit from continuing operations to be £7m below expectations in its full-year results. The company also revealed it was pulling out of London prime residential work at a cost of £6m, and making further provisions for increased losses of £11m related to the closure of its Tonbridge office and associated contracts announced last year.