UK construction giant ISG has gone into administration, sending shockwaves through its suppliers, customers and the wider construction industry.
On 20 September, the following ISG Ltd companies went into administration – Central Services Limited, ISG Interior Services Group UK Limited, ISG Fit Out Limited, ISG Engineering Services Limited, ISG UK Retail Limited, ISG Retail Limited, ISG Construction Limited and ISG Jackson Limited.
Timothy Vance, Alan Michael Hudson and Dan Edkins of EY were appointed as Joint Administrators.
Administrators said ISG’s UK operations have ceased to trade with immediate effect. No further work will be undertaken on existing UK contracts, including for construction, fit out and engineering services. About 2,000 jobs are believed to be threatened.
The group has delivered notable projects including the London Olympics velodrome and is currently working on the fit out of the London Google headquarters at King’s Cross.
It was believed to be currently profitable, but its liquidity is believed to have been affected by several major contracts which incurred losses prior to the pandemic.
ISG Ltd reported £2.2bn revenue in the year ending December 31, 2022, and a £11.5m pre-tax profit. At the time it reported net assets of £156m and net liabilities of £50m. The fit-out business recorded revenue of £988m and EBITDA of £32m. The construction division had revenue of £1.192bn and EBITDA of £4.8m.
