Interserve Press Office | Apr 30, 2018
Interserve, the international support services and construction group, reports on a difficult year for the Group, with its annual results for the year ended 31 December 2017.
Read the highlights below, or download the full results by clicking here.
|2017 ||20161 |
|Total operating profit² ||£74.9m
|Profit / (loss) before tax ||(244.4m)
|Headline earnings per share2 ||29.0p
|Net debt ||(£502.6m)
- Full debt refinancing secured with committed borrowing facilities of £834 million, through to 2021
- 2017 trading and Energy from Waste (EfW) contract performance consistent with October update
- Revenue stable at £3.25 billion, while operating profit was adversely impacted by poor performance in Support Services and Construction with continued good growth in Equipment Services
- Net debt increased to £502.6 million, driven by EfW cash outflows, non-underlying charges, a more normalised working capital position and foreign exchange movements
- Completed contract review and business review, resulting in a £86.1 million write down, of which over half will have no future cash impact
- Balance sheet review resulted in non-cash goodwill and asset write downs of £76.7 million
- Fit for Growth self-help plan underway and expected to deliver at least £40-50 million annual benefit to Group operating profit by 2020 with £15 million benefit expected in 2018
- Key contract wins with new and existing clients including the Ministry of Defence, Ministry of Justice, Department of Work and Pensions, Network Rail, BBC, Jumeirah Group (Dubai), Liwa Plastics (Oman) and Doha Festival City (Qatar)
- Future workload of £7.6 billion.
Debbie White, Interserve’s Chief Executive, said:
2017 was a difficult year for Interserve, but it was also a year of significant progress. As a new management team, we have stabilised the business and taken the first actions to establish a solid foundation from which we can both serve our customers effectively and underpin improved future operational and financial performance.
This work has focused on refinancing, conducting a thorough assessment of the contract portfolio, and introducing new management disciplines, processes and cost controls under the ‘Fit for Growth’ programme. We are confident that the cost savings and management actions identified will contribute at least £40-50 million to Group operating profit by 2020, with the 2018 benefit estimated to be £15 million.
The refinancing we recently agreed with our lenders is a major step in securing a firm financial platform to underpin the Group’s future. Of course there is much still to do. However, we are encouraged by the support from our lenders and the new facilities will allow us to execute our business plan, focus on delivering a good service for customers, drive improved operational and financial performance.”
– Ends –
For further information please contact:
+44 (0) 7786 702526
+44 (0) 207 3534200
Interserve is one of the world’s foremost support services and construction companies. Everything we do is shaped by our core values. We are 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 FTSE-listed. We have gross revenues of £3.7 billion and a workforce of circa 75,000 people worldwide.
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This announcement contains inside information
¹Comparatives have been restated. See note 14 to the condensed consolidated financial statements
²This news release and the Annual Report include a number of non-statutory measures to reflect the impact of non-trading and non-recurring items. See note 16 to the condensed consolidated financial statements for a reconciliation of these measures to their statutory equivalents and note 9 for calculation of earnings per share.