Construction services group says it will meet profit forecast despite euro-crisis and problems in Middle East

ISG has claims that the crisis in the eurozone will not impact on its full-year profits.

The construction services group said it would not be immune from the slowdown but said it was confident of meeting forecasts.

It said orders had increased by 7% to £573m for the period 1 July to 15 November 2011 and said trading had remained resilient.

The group said it had benefited from a move into retail and overseas sectors but said there had been a slow start to the financial year in the Middle East where it had been hit by delays on developments on Sowwah Island.

In the UK the firm said it was scaling back business in the North East and South West. It said it had encountered significant negative problems in the South West and had discontinued its affordable housing activity in the region.

ISG said that its London margins had been squeezed but that it would benefit from more Olympic work in the second half of the financial year.

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