Interserve’s performance in the first half of 2017 was achieved against a background of challenging market conditions, regulatory and political changes and expected cost headwinds. In our Exited Energy from Waste business we are making progress on all projects. Overall we continue to believe the provision taken in 2016 remains appropriate, although significant risks and uncertainties remain.
This has been a period of transition and I am grateful for Adrian’s ongoing hard work and commitment in advance of Debbie White’s arrival as our new Chief Executive on 1 September. In June, we announced that Group Finance Director, Tim Haywood, is to step down from the Board in September and will leave the business at the end of November. I’d like to thank Tim for his significant contribution to the business over the past seven years and wish him well for the future. The process to identify Tim’s replacement is underway and we will make a further announcement on this in due course.
In spite of recent challenges, when I meet Interserve employees I am always encouraged by the enthusiasm and positive attitude I encounter and, on behalf of the Board, I’d like to take this opportunity to thank our people for their continuing hard work and dedication.
In the UK, we expect actions taken in the first half, both in construction and support services, to lead to a better performance in the second half. In the Middle East, we see the outlook in the region as broadly favourable, notwithstanding the potential impact on general economic activity in the region of continuing political tensions between Qatar and other GCC states. Construction International has made good progress, while the actions we have taken to reduce our cost base in Support Services International have created a smaller but more resilient business. We expect our global Equipment Services business will continue to perform well in the second half of the year.
28 February 2017