Mark Whitehead 10 December 2018

Fears continue over outsourcer Interserve

Fears continue over outsourcer Interserve image

Giant outsourcer Interserve continued to look fragile today as its shares plunged to a new all-time low despite the announcement of a new restructuring operation.

The UK-based global construction, equipment and facilities management company which employs 75,000 people worldwide insisted the 'fundamentals of its business remain strong'.

But the crisis intensified as its shares lost more than 75% of their value while it struggled to negotiate its second rescue deal this year and observers raised fears of another Carillion-style collapse.

The debt-laden group said the plan would mean 'substantial' losses for shareholders as the banks that have lent Interserve more than £600m take control of the company in the deal which it hopes to complete early next year.

In a statement Interserve chief executive Debbie White said the Cabinet Office had expressed support for the recovery plan.

'The fundamentals of our business remain strong,' she said. 'The deleveraging plan will give Interserve a strong long-term capital structure and provide a solid foundation on which to build the future success of the group.'

Interserve lists local government as one of its major areas of operation along with a wide range of sectors including aviation, defence, health and social care, oil and gas, transport and nuclear.

It says: 'We are an intelligent and strategic partner with deep experience of supporting local government. We work closely with councils to tackle problems, transform communities and change lives.'

At the weekend the Labour Party called for a temporary ban on Interserve bidding for any public contracts.

Shadow Cabinet Office minister Jon Trickett said: 'The Government must take urgent steps to ensure all existing contracts with Interserve are reviewed and that they are prevented from bidding for public sector contracts until they have proved they are financially stable and there is no risk to the taxpayer.'

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Looked After Children and Vulnerable Young People

Enfield London Borough Council
Up to £89,319
 This is an exciting opportunity to lead all the services that support Enfield’s children in care and care leavers. Enfield (City/Town), London (Greater)
Recuriter: Enfield London Borough Council

Head of Communities

Kirklees Metropolitan Council
to £61,751 (pay award pending)
We are looking for an innovative and knowledgeable senior professional to join our leadership team with strong experience of working in communities... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Economic Development Officer (Town Centres)

North West Leicestershire District Council
Band F, £29,636 - £32,878 per annum
The Economic Development Officer (Town Centres) post forms part of the Council’s Business Focus team who provide help directly to businesses. Coalville, Leicestershire
Recuriter: North West Leicestershire District Council

Educational Psychologist

Camden London Borough Council
£44,131 - £53,34
The ideal candidates will have an excellent understanding of psychological frameworks and their application in... Camden, London (Greater)
Recuriter: Camden London Borough Council

Economic Development Officer

North West Leicestershire District Council
Band F, £29,636 - £32,878
Are you interested in a challenge and want to help shape the future of North West Leicestershire? Coalville, Leicestershire
Recuriter: North West Leicestershire District Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue