ISG has denied “unsubstantiated, wholly inaccurate and false claims” about its financial health.
A spokesperson for the UK’s fifth-largest contractor said the company had organised meetings with clients and consultants to relay “facts and truth” about its financial position, following rumours about the state of its finances.
“Some six to eight weeks ago, we were alerted to unsubstantiated, wholly inaccurate and false claims that were circulating about our business,” the spokesperson said.
“As you would expect, we actively reached out to our stakeholders with facts and truth, and have received strong support and further strengthened many of our existing relationships.”
ISG recently suffered delays to two high-profile jobs, including a £3bn gigafactory that has been paused since developer Britishvolt entered administration, as well as the £700m Sunset Waltham Cross film studio complex, which has been paused indefinitely due to high inflation and rising interest rates.
Nevertheless, in April the company reported an £18.5m pre-tax profit from a £2.2bn turnover for 2022, as well as £119.9m net cash.
The ISG spokesperson said the company remains in a stable financial position with a positive future outlook. “As we head towards our financial year-end, we continue to be a debt-free and profitable business, expect to enter 2024 with a record forward-order book, and we were recently recognised as the sixth-placed Best Big Company to work for in the UK,” he said.
Rumours about ISG have swirled as the construction industry continues to endure a torrid macroeconomic environment. The sector saw 4,276 insolvencies in the 12 months to 30 September – more than any other sector – according to data published by the Insolvency Service.
Meanwhile, Begbies Traynor, one of the UK’s largest insolvency practitioners, said 5,919 construction companies were on the brink of bankruptcy at the end of the third quarter – up 46 per cent from 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 (£200m turnover).
The first three companies owed a combined £224m upon collapse, putting further pressure on smaller construction companies in their supply chains. Details of Lonsdale’s debt load have not yet been published.