Interserve Press Office | Aug 09, 2017
Interserve, the international support services and construction group, reports its half-year results for the six months ended 30 June 2017.
| ||H1 2017 ||H1 2016 |
|Headline total operating profit* ||£46.1m
|Headline profit before tax* ||£36.5m
|Statutory Profit / (Loss) before tax ||£24.9m
|Basic earnings per share ||14.8p
|Headline earnings per share* ||21.5p
- Stable overall revenues of £1.6 billion in challenging market conditions and an uncertain political environment
- Headline total operating profit of £46.1 million
- Strong performances from Equipment Services and Construction International
- A resilient performance from Support Services UK despite the impact of higher operating costs driven by increased regulation
- Management actions in UK Construction gaining traction, however results impacted by underperformance on a small number of contracts and the continuation of tough market conditions
- 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
- June 2017 net debt in line with expectations at £387.5 million (2.5x EBITDA). Full-year average net debt** expected to be in the range £475-£500 million
- Strong future workload of £7.1 billion with more than 95 per cent visibility of 2017 consensus revenues, with contract wins in Support Services and a narrower market focus in UK Construction. Notable wins in the period include contracts with the Defence Infrastructure Organisation, Ministry of Justice, Network Rail, BT Group, Stagecoach Group, Musanada (Abu Dhabi) and Liwa Plastics (Oman)
Chief Executive Adrian Ringrose commented:
“Trading in the first half of the year was mixed. In the UK, Support Services delivered robust volume but margins were impacted by a number of anticipated cost headwinds, while in Construction the continuation of a long period of challenging market conditions, coupled with areas of underperformance in operational delivery, resulted in a small loss for the division. We expect the restructuring and cost reduction measures we have taken in recent months to benefit both divisions’ performance during the second half of the year.
Internationally, our Construction businesses delivered a strong performance, while Support Services International benefitted from the actions we took on its cost base in the second half of 2016, delivering a profit despite seeing a further drop in volumes. In Equipment Services, the updated strategic focus and associated operational initiatives are delivering the anticipated results.
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.
Despite the increased political and macro-economic uncertainty following the UK’s EU referendum and recent General Election, our outlook for the current year remains unchanged.”
– Ends –
For further information please contact:
Group Head of PR
+44 (0) 7909 605336
Group Director of Communications
+44 (0) 7786 702526
Richard Campbell/Michael Kinirons
+44 (0) 203 219 8816
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.
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*This news release and the Annual Report include a number of non-statutory measures to reflect the impact of non-trading and non-recurring items. Use of these non-statutory measures is considered to better reflect the underlying trading of the business. See note 11 to the condensed consolidated financial statements for a reconciliation of these measures to their statutory equivalents and note 7 for calculation of earnings per share.
** Defined as the average of the last 12 months, month-end net debt balances