Tier one contractor Wates is setting up a new fit-out business headed by the former managing director of ISG Fit Out.
Lee Phillips, ex-managing director of ISG Fit Out, will build and lead a team focusing on the London commercial fit-out and refurbishment market, Wates announced yesterday (30 October).
The new business will operate within Wates Construction to deliver “high-quality Category A and B fit-outs”, the firm added in a statement.
Phillips’ team will function separately from the contractor’s existing Smartspace business, which focuses on private and public sector frameworks.
His appointment and the establishment of a London-focused fit-out division “positions the company for growth in this market”, Wates said.
Phillips has worked for more than 30 years in the fit-out sector, including 16 years as a project director for Overbury in London. An 18-month stint as a board director at Como Group followed before he joined ISG in 2016.
Phillips became managing director of ISG Fit Out in 2019. He led eight divisions “delivering major commercial projects up to £250m in value, and focused on building long-term strategic partnerships with customers across all sectors”, according to Wates.
A spokesperson for the contractor would not be drawn when asked if the plan to set up a London commercial fit-out business pre-dated the demise of ISG Fit Out, which fell into administration last month along with seven other ISG businesses.
However, the “unique London market offers the opportunity for Wates to create a bespoke service”, the spokesperson told Construction News.
Steffan Battle, construction executive managing director at Wates, said: “Our focus on London’s commercial sector continues to increase and creating a dedicated fit-out operation for this unique market complements our existing expertise, while offering a point of difference to customers.”
Wates’ annual group accounts for 2023 showed that Smartspace employed 233 workers and turned over £122m.
ISG Fit Out reported turnover of £567.8m in its most recent accounts for the 2022 calendar year. Pre-tax profit stood at £24.5m and it employed a monthly average of 500 staff.
An administrators’ report published last Monday (28 October) showed that the firm owes £111.4m to its supply chain.
Phillips is not the first senior ex-ISG employee to find new work. Former chief executive Matt Blowers joined Structure Tone – another fit-out firm – on 23 September.
In a LinkedIn post to ISG Fit Out staff last month, Phillips said: “What I want to say is that with your drive, talent and experience I know you will be in high demand… If I can help any of you search for new roles, pls do not hesitate to contact me.”
