Contractor sees construction revenue remain flat as group highlights 鈥済ood results鈥� overall
The construction arm of contractor Interserve saw operating profit fall 24% in the first half of the year.
In the six months to 30 June 2012 the firm made a operating profit of 拢14.3m down from 拢18.7m over the same period last year.
Construction revenue in the first half of the year was 拢470m compared with 拢472m over the same period last year.
The firm鈥檚 UK construction arm was worst hit in terms of profitability with profit sliding 27% to 拢7.3m in the first half of the year.
However, in a statement to the city released today, the group reported an 8% jump in pre-tax profit overall for the first half of the year. The firm also reported a 3% rise in group revenue over the period to 拢1.2bn.
The group鈥檚 growth was driven by its support services and development arms with construction revenue remaining flat.
Support services saw revenue grow 12% in the UK and 29% abroad while construction revenue grew only 0.4% in the UK and declined 3% abroad.
Interserve said it expected revenue from construction to remain 鈥渟ubdued鈥� with growth not scheduled to return until 2014.
Adrian Ringrose, chief executive of Interserve, said: 鈥淲e have delivered a good set of results against a backdrop of continuing mixed market conditions.鈥�
He added: 鈥淥ur confidence is demonstrated by the board鈥檚 announcement of a further increase in dividend and reiteration of our guidance for stable performance in 2012 compared with 2011.鈥�
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