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Press Release

Interserve issues AGM trading update

by Interserve Press Office | May 12, 2017

In advance of today’s AGM, Interserve, the international support services and construction group, provides an update on current trading for the first four months of the year and reiterates management expectations for full year 2017 performance.

  • Revenue in our Support Services division remains robust and in-line with our expectations. The actions which we are taking to offset the impact of increasing employment cost will benefit the division over the course of the full year with profit performance somewhat more second-half weighted than in previous years.
  • Equipment services continues to have good momentum across its international markets, particularly the UK, Middle East and Far East. The implementation of the actions arising from last year’s strategic review is benefitting this division.
  • Our International Construction and support services businesses are also performing as expected, with visibility of future workload maintained. 
  • Trading in our UK construction business remains mixed, but is in line with our overall expectations, which anticipate an improving performance in the second half of the year as older, less favourable contracts are completed. 

Progress on contracts within our exited Energy from Waste business is in line with expectations.

Order intake and revenue performance in the year to date is satisfactory, with healthy volumes in UK Support Services and our selective approach in UK Construction working through.  Notable contracts within our work winning in the year to date are:

  • UK Support Services: a new five-year facilities management contract with Network Rail worth £65 million and a one-year contract extension to provide total facilities management services to the Ministry of Justice worth £16 million
  • UK Construction: work worth, in aggregate, £77 million to design and build four schools
  • RMDK: orders on major projects including the Mersey Gateway and the A14 upgrade scheme in the UK, together with ongoing work on a number of projects in Bahrain for the NASS group
  • International Construction: contracts at the Liwa Plastics scheme in Oman worth £72 million and, in Qatar, for Siemens to construct substations worth £50 million
  • International Support Services: a new FM contract for government buildings in the UAE worth £17 million and, in Qatar, a shutdown contract on an industrial production facility for £39 million

There has, as yet, been little noticeable slowdown in our volume of work from UK Government, although workflow may be impacted by the General Election.

Our expectations for the overall performance and cash delivery of the Group are consequently unchanged.

Our Half-year results will be released on Wednesday 9th August.

For further information please contact:

Rhys Jones
Group Head of PR
Interserve
+44 (0) 118 960 2285

Richard Campbell/Michael Kinirons
CNC Communications
+44 (0) 203 219 8816

About Interserve

LEI: 549300MVYY4EZCRFHZ09.

Interserve is one of the world’s foremost support services and construction companies. Our vision is to redefine the future for people and places. Everything we do is shaped by our core values. We are a successful, growing, international business: a leader in innovative and sustainable outcomes for our clients and a great place to work for our people. We offer advice, design, construction, equipment, facilities management and frontline public services. We are headquartered in the UK and listed in the FTSE. We have gross revenues of £3.7 billion and a workforce of circa 80,000 people worldwide.

www.interserve.com
For news follow @interservenews

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