Fit-out firm BW Interiors has ruled out taking on any jobs being carried out by collapsed contractor ISG, its chief executive has told Building.
The £200m turnover company’s boss Steve Elliott said it had a “golden rule” not to take over jobs started by collapsed rivals.
And he added that it was “highly unlikely” there would be a situation in which BW would take on jobs ISG had won but had not yet started.
His comments echo those of others who have privately ruled out taking on certain jobs. “You don’t know what liabilities you’re going to find,” one major firm said.
Elliott said the firm was taking on a “handful” of former ISG staff in the coming weeks mainly to bolster its expertise in the sustainability and commercial office sectors.
“I have friends who worked there and it is desperately sad what has happened,” he said. “They were a solid company to compete against and we always enjoyed our underdog status. Now there’s only one big firm left [Overbury].”
He said BW’s supply chain was unlikely to be affected by ISG’s collapse as there “was very little overlap” between the two businesses.
He added: “The markets they were in were £50m and above. We’re not in that market, we’re between £2m and £50m.”
But he admitted: “[ISG’s collapse] is disruptive. I’d rather they were still here.”
Elliott was speaking as the firm posted its latest set of results which show turnover fell 7% to £200m last year although pre-tax profit was up 38% to £3m. That gave a pre-tax margin of 1.5% and Elliott acknowledged the figure needed to head north. “Our margins are on the turn and we aim to be 5% net.”
The firm, which is on several frameworks including those for the BBC and tech firms, said it is expected to see turnover this year hit £250m and £275m in 2025. BW has a long-term target of £350m but Elliott added project selection was key to its business model. “We turn away more work than we actually tender. We are very stringent on what we will accept [to bid].”
Its main sectors are commercial offices, including its current biggest, a £30m headquarters scheme in London, and higher education. Around 90% of its work is in commercial office for clients in the legal, banking and tech sectors.