Shares in construction services group ISG Plc (LON:ISG) have fallen nearly 30 percent this morning after a trading update showed disappointing losses for its UK construction arm.
The company said in a statement:
“We anticipate the results for the full year being in line with the Board’s expectations for all divisions except UK Construction.
“Despite the many positive steps we have taken, we have continued to experience disappointing project outcomes on some older contracts. In addition, with margin and risk control remaining our priority rather than volume and some customers delaying the start on site of their projects, volumes this year will be below our expectations with profit deferred to later periods.”
ISG announced that UK Construction will end up in the red this year, impact the Group’s finances by up to £5 million.
However other parts of the company are performing well, with its total order book increasing by 12 percent to £1,130 million, and results on track to end the year with a net cash position in excess of £50 million, up nearly £12 million on 2014.
ISG plc have a 52 week range of between 140 and 356, and are currently trading down 26.81 percent at 150.40 pence per share.