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Creditors' voluntary liquidation · 30 October 2024

ISG

Construction · London · Greater London · Part of ISG

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What happened

ISG LIMITED (company number 10081578), incorporated in 2016, entered creditors' voluntary liquidation on 30 October 2024. Its status at Companies House is now: liquidation.

Why it failed

Loss-making high-rise contracts, Covid, inflation, stalled major projects and tighter bonding strained liquidity, and attempts to sell Fit Out or recapitalise the group failed before the September 2024 administrations.

  • Main reason: Losses on contracts
  • Covid-19
  • Cost inflation
  • Clients not paying or failing
  • Delays
  • Funding withdrawn
  • HMRC debts
  • Sale or investment failed
  • Cash flow
  • Group company failed

Our summary of the reasons given in the administrators' proposals for ISG Construction, another company in the group. These record the administrators' and directors' account of what happened.

The directors and shareholders decide to close an insolvent company. A liquidator sells its assets and shares the proceeds among creditors.

Previously known as: ISG PLC, CATHEXIS UK HOLDINGS II PLC, ISG GROUP PLC.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 31 December 2022

    Last accounts filed were made up to this date

    22 months later

  2. 30 October 2024

    Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Dec 2022
£2.2bn
Accounts at Companies House
Staff, year to Dec 2022
3,079
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 20 September 2024
£885.0m
of which trade creditors £308.3m. HMRC owed £89.4m. staff owed £6.3m. Expected return to unsecured creditors: none expected
Administrators' proposals for ISG Construction Ltd and other group companies

The last accounts filed were group accounts made up to 31 December 2022, 22 months before it failed. Private companies have nine months after their year end to file, so a gap of more than 21 months usually means the next accounts were overdue, one of the warning signs worth checking for.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

ISG: how a £2bn contractor ran out of road, and 8 checks to protect your business

On 20 September 2024, ISG stopped trading. It had turned over more than £2 billion a year, built prisons for the Ministry of Justice and fitted out offices across London. That morning 2,164 people were made redundant. The administrators expect nothing for the firms it owed £885 million.

Turnover in its last group accounts
£2.2bn

Group turnover in 2022

Source: ISG Limited annual report and consolidated accounts for the year to 31 December 2022, filed at Companies House 11 May 2023

Staff in the companies that went into administration
2,380

Staff in the companies in administration; 2,164 made redundant on day one

Source: Joint Administrators' statement of proposals for ISG Construction Limited and other ISG companies, Ernst & Young LLP, filed at Companies House 28 November 2024

Owed to unsecured creditors
£885m

Owed to unsecured creditors, including about £308m to trade creditors

Source: Joint Administrators' statement of proposals for ISG Construction Limited and other ISG companies, Ernst & Young LLP, filed at Companies House 28 November 2024

Expected back for unsecured creditors
Nothing

Source: Joint Administrators' statement of proposals for ISG Construction Limited and other ISG companies, Ernst & Young LLP, filed at Companies House 28 November 2024

Read the full report

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