Building envelope specialist FK Group has posted healthy results at its core facades and building safety divisions but the company bottom line was hit by a long-running dispute with ISG at its construction arm.

Group turnover was £100.6m for the year to March 31 2024 from £131.4m last time generating a pre-tax loss of £5.9m from £614,000 last time.

Losses were concentrated at the construction division which has been embroiled in a long-running dispute with collapsed contractor ISG.

The construction division posted a pre-tax loss of £7.5m from a turnover of £30m after setting aside £5.5m due to the dispute.

ISG went under last September with both sides still at loggerheads over two warehouse projects.

FK Group CEO Francis Keenan said: “This loss was attributable to a well-publicised and documented legal dispute with ISG.

“The financial  numbers to 31 March 2024 were ultimately impacted by the subsequent administration of ISG. The insolvency of ISG compounded the losses incurred through extensive legal costs as it  extinguished the expected recovery from ISG.”

The core FK Facades division postd a jump in pre-tax profit to £1.2m from £56,000 last time as turnover stayed stable at £57m from £59m.

Building safety and remediation division FK Resolv also saw pre-tax profits rise to £1.2m from £53,000 as turnover ticked-up to £13.4m from £11.8m.

Keenan said: “The other trading divisions within the group performed strongly.

“Our current order book stands at over £200m, and with the continued growth in our core markets we are  excited at the prospect of 2025 and beyond.”