Administrators of ISG’s failed businesses have clawed back more than double the cash first expected from the wreckage of collapsed contractor.

The extra cash haul will pave the way for payouts to former staff, but trade contractors and suppliers will still not see any of the cash they are owed.

The latest EY progress report shows recoveries from ISG’s trade debtors and client-held retentions have soared to £26.3m, compared to an estimated £11.4m in the directors’ original Statement of Affairs.

EY also struck a £5.3m legal settlement with a client, backed by litigation funder Bench Walk and insurance from Ignite, bringing total receipts far ahead of early forecasts.

The administrators say the stronger-than-expected haul will allow dividends to be paid to employees owed wages and holiday pay once Employment Tribunal protective award judgments are finalised.

That process is expected to take another six months.

Four ISG companies are now expected to pay staff in full, including ISG Construction, ISG Central Services and ISG Retail.

The news is not so good for staff at ISG Interior Services Group where just 7.2p in the pound will be returned.

But the report offers no comfort to other creditors. HMRC has lodged £91m of “secondary preferential” claims for unpaid VAT, PAYE and National Insurance but is unlikely to recover the full amount. Around £885m is owed to unsecured suppliers and subcontractors, and EY confirmed no distribution is expected for that group.

Goldman Sachs, which previously held secured creditor status, has released its guarantees and no longer has any economic interest in the process.

EY said the administrations have been extended by 12 months to September 2026 to allow time to chase further recoveries, complete employee payments, and close down the estates.

Professional fees have risen above estimates due to the higher recovery work, with time costs of £1.75m and expenses of £3.4m in the latest period.