ISG demise prompts strategic rethink at joinery firm

A £38m-turnover joinery and fit-out firm says it has been forced to reevaluate its business strategy following ISG’s collapse last September.

In its annual results for the year to 31 December 2024, Taylor Made Joinery Interiors said the tier one contractor’s downfall had sounded an alarm bell, warning that the “most significant risk identified during the year, as evidenced by the ISG administration, is overreliance on any single contractor”.

It is estimated that ISG’s demise will cost the wider supply chain around £885m in unpaid retentions and bills. 

Taylor Made said it had “actively mitigated this risk” by diversifying its client base and by “working with a broader number of main contractors to spread exposure”.

“Additionally, we maintain comprehensive credit insurance coverage to protect against potential customer insolvencies,” it said.

The Suffolk-based firm posted revenue of £37.7m for the year, slightly up on the 2023 total of £36.9m. But it said its “revenue performance was impacted by the administration of ISG, which affected our turnover aspirations within 2024”.

“Despite this challenge, the London fit-out market and beyond has remained buoyant, supported by an increasing desire to get people back to the workplace,” it said.

Pre-tax profit at the firm – which underwent a management buyout last October – fell from £2.1m to £1.9m.

A focus on “stringent and ongoing cashflow management” had allowed Taylor Made to meet all of its obligations, despite the “uncertain economic backdrop following the ISG demise”, the firm said in its accounts.

Despite the impact of ISG’s downfall, Taylor Made said supply chain conditions had “substantially improved” over the past year.

It added: “Price volatility has stabilised, and along with strong key supplier relationships, this has enabled us to effectively manage costs and maintain our margin levels.”

With a £2.2bn turnover, ISG was the biggest corporate failure in the construction industry since Carillion collapsed in 2018. Over two-thirds of ISG’s 2,400 staff are now pursuing Employment Tribunal claims against the firm over the way they were made redundant.

The wider impact of ISG’s failure has been well documented. At least two firms – Seventynine Lighting and Vitrine Systems – have blamed ISG for their own demise. It has also hit the public sector, with the Ministry of Justice estimating in January that it would cost the department around £300m.

Last year, steel specialist Billington said its trade credit insurance had helped protect it from the financial fallout.