Firm says performance in other divisions is 鈥榦ffsetting鈥� UK construction division trading
Interserve has said UK construction market conditions are 鈥渃hallenging鈥� in a trading update this morning.
The firm said more 鈥渆ncouraging鈥� trading across its other divisions - support services, equipment services and international construction - was 鈥渙ffsetting鈥� performance in its UK construction division, which it said 鈥渞emain[s] more challenging鈥�.
Interserve said overall trading is 鈥渋n line with the board鈥檚 expectations鈥�.
The trading update comes ahead of publication of Interserve鈥檚 half-year results for the six months to June 2015, which will come out next month.
Stephen Rawlinson, analyst at Whitman Howard, commented: 鈥淭he indications that it is trading well in Support Services, Equipment Services and International Construction sits oddly with the news that trading in UK Construction is 鈥渕ore challenging鈥�.
鈥淲e suspect trading is very strong outside of the UK Construction piece and therefore is in line overall.鈥�
Recent major contract wins for Interserve鈥檚 UK Construction business include the contract to build the 拢900m One Nine Elms towers (pictured) in London, won in joint venture with China State Construction Engineering Corporation.
Last month the firm was selected preferred bidder for the 拢200m redevelopment and refurbishment of a Ministry of Defence rehabilitation centre near Loughborough.
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