ISG has denied “baseless, grossly inaccurate and false claims” about its financial health.
A spokesman for the UK’s fifth-largest contractor said the company had arranged meetings with clients and consultants to convey “facts and truths” about its financial position, following rumors about the state of its finances.
“About six to eight weeks ago, we were alerted to unsubstantiated, completely inaccurate and false claims being circulated about our business,” the spokesman said.
“As expected, we actively reached out to our stakeholders with facts and truths, and have received strong support and further strengthened many of our existing relationships.”
ISG has recently suffered delays to two high-profile jobs, including a £3bn gigafactory that has stalled since developer Britishvolt went into administration, as well as the Sunset Waltham cinema studio complex Cross of £700 million, which has been stopped indefinitely due to high inflation and the increase. interest rate
However, in April the company reported pre-tax profit of £18.5m on turnover of £2.2m in 2022, as well as net cash of £119.9m of pounds
The ISG spokesman said the company remains in a stable financial position with a positive future outlook. “As we head towards the end of our financial year, we remain a profitable and debt-free business, we look forward to entering 2024 with a record backlog of backorders and we were recently recognized as the sixth best large company to work for. in the UK,” he said.
Rumors about ISG have swirled as the construction industry continues to endure a torrid macroeconomic environment. The sector registered 4,276 insolvencies in the 12 months to September 30, more than any other sector, according to data published by the Insolvency Service.
Meanwhile, Begbies Traynor, one of the UK’s biggest insolvency practitioners, said 5,919 construction firms were on the brink of bankruptcy at the end of the third quarter, up 46% on three months earlier.
High-profile insolvencies this year have included Tolent (£200m turnover), Henry Construction (£400m turnover), Buckingham Group (£665m turnover) and Michael J. Lonsdale (200 million £ turnover).
The top three firms claimed a total of £224m in collapse, putting more pressure on smaller construction firms in their supply chains. Details of Lonsdale’s debt load have not yet been released.
