Interserve says 2012 trading in line with expectations

published 8 January 2013

Interserve said on Monday trading for 2012 was in line with expectations following a number of contract wins.

Ahead of its annual results to be unveiled in February, the international support services and construction group gave a taste of what to expect.

The group reported significant value realisation from its private finance initiative (PFI), generating £124.5m cash and £55m asset transfer into the pension scheme.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Results were driven by contracts awarded with East Thames Group, Carphone Warehouse, London Borough of Southwark, Christie Hospital NHS Foundation Trust, Northumbrian Water, Meraas Developments, General Electric International, Dolphin Energy and the British School Muscat.

In the past year the company has invested about £70m, acquiring Interserve Working Futures, Advantage Healthcare and Middle East oil and gas services business The Oman Construction Company(TOCO).

Chief Executive Adrian Ringrose said the company had flown in the face of mixed market conditions and would execute a strategy to remain on track for achieving medium-term growth.

"We have realised significant latent value from our PFI portfolio, positioned the business to take advantage of strategic opportunities and materially reduced our pension deficit," he said.

"The recent acquisitions of TOCO and Advantage Healthcare together with continued organic progress further underpin our medium-term growth potential. We have confidence in our ability to make further progress in 2013."

The company has in recent months realised value of £179.5m from its PFI assets, which has improved its financial position and placed it well for strategic development opportunities.

Shareholder approval was granted Monday for the disposal of PFI assets into the pension scheme, which reduced the group's actuarial pension deficit to £95m.

The firm also announced David Trapnell would retire from the board in May after 10 years as a Director, including two years as Senior Independent Director. Chair of the Audit Committee Les Cullen will step into his shoes and Anne Fahy will take Cullen's place.

Shares jumped 2.38% to 408.00p at 08:23 Monday.