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Interserve registers a loss of $64m in 2016

Interserve reported a loss before tax of $64m in 2016, compared to $98.3m in 2015, reflecting costs of exiting its energy-from-waste business

Adrian Ringrose, chief executive of Interserve said that 2016 was a mixed year for the company.
Adrian Ringrose, chief executive of Interserve said that 2016 was a mixed year for the company.

UK-headquartered support services and construction firm, Interserve, has registered a loss of $64.1m in 2016.

Revenue for 2016, increased marginally to $4bn, from $3.96bn in 2015, which the company said was offset by a modest decline in the UK Support Services, due to delays in Government procurement around the 2015 General Election and Brexit uncertainties.

Interserve also noted that in 2016, it won key contract with both new and existing clients including the Defence Infrastructure Organisation, the Home Office, BBC, JLL, Land Securities,

Severn Trent, Meraas (Dubai), SEPCO (Oman), and InterContinental Hotels Group (Qatar).

Chief Executive Adrian Ringrose said: “2016 was a mixed year for the Group. We delivered a strong cash performance and the majority of our businesses performed well despite political and economic uncertainties, together with the impact of the National Living Wage in the UK.

“However, the performance of our UK Construction business was disappointing, and we are focussing our efforts on improving and re-shaping this business.

“Managing the challenges of exiting from the Energy from Waste sector remains a significant priority. As previously announced, we have increased the exceptional provision for exiting this market and the associated contracts to $198m (GBP160m).

“We expect to complete substantially all of the construction and commissioning of the projects during 2017, although our contractual obligations in respect of warranties, and the resolution of claims will continue for a period thereafter.” 

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Construction Week - Issue 754
Nov 23, 2019