Support services firm suffers following 拢8m accounting irregularities costs

Support services company Interserve has been forced to take an 拢11m hit, largely because of costs associated with an investigation into accounting irregularities at the company.

Interserve said that it had had to pay out 拢8m of professional costs because of the investigation of 鈥渁ccounting misstatements鈥� in its industrial services division which came to light last September.

On top of that, the company was hit by a one-off cost of 拢4m associated with the integration of FM company MacLellan which it bought in July last year.

However, in the trading update for the 2006 financial year, Interserve said that it had made an exceptional gain of 拢1m following a PFI asset sale in January 2006.

The company has secured new contracts and preferred bidder appointments of more than 拢1.8bn.

Interserve鈥檚 share price was unaffected by the announcement, at 430p a share.