Interserve battles through 2011

Support services and construction group Interserve managed to increase profit despite tough conditions in construction markets in 2011.

Gross revenue, which includes the company's share of associates and joint ventures, rose 0.2% to £2,430m in 2011 from £3,215m the year before. Consolidated revenue eased, however, to £1,847.5m from £1,872.0m in 2010, and was a little shy of market consensus forecasts of £1,852.5m.

Adjusted profit before tax, on the other hand, was ahead of consensus, climbing 4.6% to £72.8m from £69.6m the year before. The investment analysts had pencilled in a figure of £70.7m.

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Headline earnings per share rose 15.2% to 49.3p (consensus 44.24p) from 42.8p the previous year, underpinning a 5.6% increase in the full year dividend to 19.0p from 18.0p in 2010.

"We made further excellent advances in increasing the margins in Support Services and are on track to reach our target for the division of 5 per cent by the end of 2013. Construction has done well both in the UK and internationally

in a tough market where margin pressure and increased competition have had an effect. Equipment Services is emerging from the bottom of the cycle in good shape, improving margins and making a good return on capital," revealed Chief Executive Adrian Ringrose.

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