ISG’s retail business also performed strongly during the first half of the year focusing on food and financial retail clients.

A trading statement from the firm today highlighted a growth in private demand in the south east.

But ISG said its South West division “has been slow to respond to more difficult market conditions, which will result in an exceptional restructuring cost”.

ISG said: “In summary, in the UK we have seen signs of recovery in the South East but the rest of the country remains challenging.”

The firm said increased turnover across the business has offset lower margins “in the current competitive environment.”