13 Nov 2015 07:00
Press Release
November 13, 2015
Q3 TRADING UPDATE
Interserve, the international support services and construction group, today provides a third quarter update on trading ahead of its full-year results announcement on February 24, 2016.
The Group operates across a broad range of segments and geographies, which have experienced mixed market conditions since the publication of our half-year results in August. However, the Group's outlook for the full-year remains unchanged with expectations for continued growth reflecting the robustness of our portfolio of businesses.
An overview of the performance in our main trading divisions is set out below:
Support Services continues to perform well, including in UK frontline public services through the successful mobilisation of the Transforming Rehabilitation programme. Internationally, despite the pressures of low oil prices, demand for our critical operational support functions continues to be strong with resilient margin performance.
Construction has continued to strengthen in the Middle East, reflecting our focus on key clients in retail, leisure and infrastructure. Accordingly we expect results in the International Construction segment to show positive progress over 2014. In the UK, whilst the performance of our building and fit-out businesses is encouraging, this year's segmental result will be impacted by three loss-making energy process contracts within our infrastructure business. This is due in large part to sub-contractor insolvencies and the consequential impacts on project timing and costs. Our involvement in the delivery of these contracts is substantially complete. Expectations for the full year are for a break-even performance in the UK Construction segment.
Equipment Services has continued to deliver outstanding growth, fuelled by strong demand and benefitting from the increased scale of the hire fleet in which we have invested significantly in recent years. Trading is particularly strong in parts of the Middle East, the Far East and the UK, more than off-setting volume reductions from the cyclical downturn in Australia.
In respect of other key performance metrics, anticipated year-end net debt remains unaltered in the range £270-300 million and our visibility of Future Workload remains encouraging, with 60 per cent of 2016 consensus revenues secured as at the end of Q3 (Q3 2014: 60 per cent). Since our half-year results we have won a range of new contracts and extensions with clients such as Siemens; Hilton Hotels; Petrofac; Qatar Cool; the UK's Department for Transport; Durham, York and Warwick Universities; Scottish Power and Northern Powergrid.
Ends
For further information please contact:
Rhys Jones, Group PR Manager Tel: 0118 960 2285
Richard Campbell/Michael Kinirons, CNC Tel: 0203 219 8816
About Interserve
Interserve is one of the world's foremost support services and construction companies. Our vision is to redefine the future for people and places. Everything we do is shaped by our core values. We are a successful, growing, international business: a leader in innovative and sustainable outcomes for our clients and a great place to work for our people. We offer advice, design, construction, equipment, facilities management and frontline public services. We are headquartered in the UK and listed in the FTSE 250 index. We have gross revenues of £3.4 billion and a workforce of over 80,000 people worldwide.
Website: www.interserve.com
For all news follow: @interservenews