ISG Reports 52% Revenue Increase

Information Services Group (ISG), the acquisition vehicle set up by former VNU boss Michael Connors, has reported a 52% increase in third quarter revenues to $48.9m, from $32.2m in Q3 2010.

Connors started ISG in 2007 with almost $260m in funds. His company's first acquisition was outsourcing advisory firm TPI, and this was followed earlier this year by UK-based benchmarking and analytics firm Compass and public sector advisor STA Consulting.

Third quarter 2011 adjusted EBITDA totalled $5.4m, compared with $3.6m in the third quarter 2010. Group income for the third quarter was $1.8m, which included $0.6m in restructuring costs. This compares to a $51.9m operating loss reported in the third quarter of 2010, which included a $52.5m impairment charge.

The results will provide a major boost, as the company's revenues had plunged from $174.8m in 2008 to c.$132m in each of the last two years, while Connors predicts that 2011 will not just bounce back but actually beat the revenue total from three years previously. He comments: 'Our strong performance reflects the success of our strategy to build a unified go-to-market approach with enhanced product offerings in research, consulting and managed services with a streamlined operational footprint. Based on current business trends, we raise our full year revenue guidance to a range of $180m to $185m and re-affirm our adjusted EBITDA guidance of $19m to $21m, which excludes Compass and STA Consulting integration costs.'

Connors says the firm plans to continue to make acquisitions in the future 'as an effective use for our free cash flow'.

Web site: www.informationsg.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.