Interserve sees solid future workload

Over one billion pounds-worth of new work was won by Interserve in the first half of 2012, reinforcing the strong future workload at the support services and construction group.

The firm said it still expects trading to be "stable" in 2012, in line with market forecasts, after revenues and margins increasing as expected in the first half.

Chief Executive Adrian Ringrose said: "Interserve is trading well, expanding our already strong client relationships. This is reflected in revenue growth and a healthy future workload. Additionally, we have executed our strategy through the acquisition of BEST, a public services business, and have unlocked further value from our PFI portfolio."

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Interserve says that segmental performances remain consistent with those described at the last trading statement in May. It has won work worth over £1bn so far this year with clients including the Ministry of Justice, Alliance Boots and Sainsbury's.

In Support Services, the firm said that both UK and International operations are progressing well with the core markets showing growth. Margins are improving year-on-year.

In Construction, the firm noted some weakness in international markets but this has been offset by outperformance in the UK.

Interserve said that trading has been underpinned by strong cash generation, noting that the recent partial disposal of its interest in UCLH will generate £35m in cash.

"We have significant available debt facilities which, combined with prudent cash management, reinforce our strong financial position," the company said.

BC