{"id":526746,"date":"2025-08-12T12:45:24","date_gmt":"2025-08-12T11:45:24","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=526746"},"modified":"2025-08-12T13:41:47","modified_gmt":"2025-08-12T12:41:47","slug":"isg-collapse-causes-significant-setback-for-me-contractor","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/isg\/isg-collapse-causes-significant-setback-for-me-contractor-12-08-2025\/","title":{"rendered":"ISG collapse causes \u2018significant setback\u2019 for M&E contractor"},"content":{"rendered":"

A subcontractor has said its profit and turnover took a hit after ISG went under last year, forcing it into a \u201csubstantial gross write-off\u201d.<\/span><\/p>\n

Pre-tax profit at Hensall Mechanical Services \u2013 based in the Yorkshire village of Eggborough \u2013 fell from \u00a32.6m to \u00a3952,000 in the year to 31 December 2024.<\/span><\/p>\n

Tier one contractor <\/span>ISG<\/span><\/a> was a \u201cmajor client\u201d for Hensall, managing director Chris Bond said.<\/span> Its collapse last September<\/span><\/a> proved a \u201csignificant setback\u201d for Hensall and \u201cdirectly contributed\u201d to about a 40 per cent decline in turnover from \u00a335.5m to \u00a321.1m, he added.<\/span><\/p>\n

The gross write-off included unrecoverable retentions, Bond said.<\/span><\/p>\n

\u201cDespite this disruption, the company remained profitable [\u2026] while maintaining strong cashflow and healthy balance sheet reserves,\u201d he added.<\/span><\/p>\n

Cash at the subcontractor was also down, at \u00a33.38m compared with \u00a34.4m last year.<\/span><\/p>\n

The subcontractor works across the justice, education, leisure and commercial sectors.<\/span><\/p>\n

Hensall was involved on some of ISG\u2019s biggest projects, including the \u00a356m refurbishment of HMP Liverpool \u2013 a job it bagged last March. The firm was appointed to deliver sanitary, ventilation, electrical and heating systems at the prison.<\/span><\/p>\n

ISG expected to complete the work in the autumn of 2026.<\/span><\/p>\n

Bond said ISG\u2019s collapse had also \u201chad a major impact on our suppliers and subcontractors in addition to ourselves\u201d.<\/span><\/p>\n

\u201cWorking in a fair and mutually beneficial manner with them is really important to us and since ISG went into administration we have worked hard to expand the range, volume and quality of organisations that we work for,\u201d he added.<\/span><\/p>\n

Despite the impact of ISG\u2019s downfall, Bond said Hensall had a \u201cstrong\u201d order book, and that he expected turnover to recover to more than \u00a330m. He also forecast that profit would recover \u201cto historic[al] levels\u201d.<\/span><\/p>\n

ISG was the sixth-biggest contractor in the UK when it went under, with revenue totalling \u00a32.2bn.<\/span><\/p>\n

The collapse hit subcontractors, government clients and projects up and down the country, as clients scrambled to replace the main contractor on jobs and minimise supply chain exposure.<\/span><\/p>\n

Two firms \u2013 Vitrine Systems and Seventynine Lighting \u2013<\/span> directly blamed ISG<\/span><\/a> for their demise, with<\/span> Vitrine taking a \u00a33m hit<\/span><\/a> when ISG was kicked off a major job.<\/span><\/p>\n

Numerous councils have also been impacted, with Manchester City Council<\/span> recording a \u00a33m cost and a six-month delay<\/span><\/a> for a secondary school build on which ISG was main contractor.<\/span><\/p>\n

The tier one firm also<\/span> caused a \u00a31.5m cost hike on a project to build a sports centre<\/span><\/a> in Chesterfield.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A subcontractor has said its profit and turnover took a hit after ISG went under last year, forcing it into a \u201csubstantial gross write-off\u201d. Pre-tax profit at Hensall Mechanical Services \u2013 based in the Yorkshire village of Eggborough \u2013 fell from \u00a32.6m to \u00a3952,000 in the year to 31 December 2024. Tier one contractor ISG …<\/p>\n","protected":false},"author":90643,"featured_media":511742,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[554,552,535,57171],"tags":[],"class_list":["post-526746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-administrations","category-financial","category-isg","category-supply-chain","issue-online-news"],"yoast_head":"\nISG collapse causes \u2018significant setback\u2019 for M&E contractor | Construction News<\/title>\n<meta name=\"description\" content=\"A subcontractor has said its profit and turnover took a hit after ISG went under last year, forcing it into a \u201csubstantial gross write-off\u201d. 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