While Interserve posted profitable interim results last month for the first half of 2017, thanks to its facilities management operations, it continues to lose money in its UK construction activities, making an operating loss of 拢2.0m for the six months to June 2017.
In an update today the company revealed that things were getting worse: 鈥淭rading in the UK in July and August was disappointing, particularly in support services, but also in the construction division. As a result of this, the board now believes that the outturn for the year will be significantly below its previous expectations.鈥�
It added that the cost of quitting the waste-to-energy business was also now turning out to be even higher than expected. Interserve raised its estimate of the damage done building waste-to-energy plants from 拢70m to 拢160m. Six months on, and that number has risen 鈥渟ignificantly鈥� although we don鈥檛 yet know by exactly how much.
鈥淔urther progress continues to be made on contracts within our exited energy from waste business,鈥� the Interserve board said today. 鈥淗owever, the anticipated timing and complexities of completion mean that the board now considers it likely that the final costs will significantly exceed the 拢160m currently provided. A further update will be provided in due course.鈥�
The news comes just two weeks after Debbie White joined the company as chief executive, taking over from Adrian Ringrose who (despite having only just turned 50) has now started to build a non-executive portfolio, chairing industrial painting contractor Taziker Industrial and pipeline monitoring specialist Syrinix.
Got a story? Email news@theconstructionindex.co.uk
