Outsourcing group points to government spend after expected reduction in half-year profits
Pre-tax profits at outsourcing giant Interserve fell by a third in the first six months of the year to 拢27.3m, as the firm was hit by weaker demand for construction and equipment services.
Revenue also fell, by just 0.7%, to 拢944.5m, on the same period in 2009. The profit figure compares to 拢40m for the same period last year. However, the firm said it was pleased with the results, which hit expectations, and predicted a stronger second half for the business.
The firm said that a strong performance in the first half from previously won support services contracts was more than countered by a fall-off in equipment services, which failed to match a record 2009. It said it remained confident that in the medium term, with a forward order book of 拢5.7bn, that the government clampdown in spending would see more opportunities for outsourcing of public services.
UK construction revenue fell by 6.3% to 拢380m.
Chief Executive Adrian Ringrose: 鈥淯ncertainties persist in our markets, but we remain confident that the second half will show a significant uplift on the first half and that we have a strong international platform from which to sustain long-term growth at attractive margins.鈥�
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