Interserve unveils more contract wins

Contracts continue to roll in at support services and construction group Interserve, with the group confirming that trading remains in line with expectations.

The company said it has won another £400m of contracts since its Interim Management Statement released in mid-November, taking the total of major contract wins over the last 12 months to £1.9bn.

Support Services has continued to deliver significant profit growth, on

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broadly stable volumes, the company said.

The performance of the Construction division was described as "resilient" but, as previously indicated, the business's margins are under pressure and competitors are fighting hard for business.

Trading in Equipment Services is starting to recover, with strong performance in Australasia, the Pacific Rim and Saudi Arabia helping to counteract the impact of the Arab Spring and cyclical weaknesses elsewhere.

"Looking forward, we anticipate that increasing pressure on UK public sector spending will provide us with further outsourcing opportunities, helping to offset a reduction in construction activity. Internationally we are well positioned both to grow our existing businesses and to expand the range of our offerings in some of the world's fastest-growing economies," said Chief Executive Adrian Ringrose.

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