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 HR/OD

Babergh & Mid Suffolk
£60,000 circa
The role will involve working closely with the Senior Leadership Team and Chief Executive to lead our People Strategy and... Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Customer Services Assistant (Libraries)

Essex County Council
Up to £9469 per annum
Please note this is part time position (18.5 hours a week) across Uttlesford, mainly based in Dunmow and Stansted and is to be offered on an initial 6 England, Essex, Dunmow
Recuriter: Essex County Council

Customer Services Assistant (Libraries)

Essex County Council
Up to £18938 per annum
Please note this position is to be offered on an initial 6 month , fixed term basis. Do you enjoy working with people? Enthusiastic about playing a ke England, Essex, Saffron Walden
Recuriter: Essex County Council

Customer Services Assistant - Mark Hall Library

Essex County Council
£17000 - £18950 per annum
Please note that this position is a part time role, offering 18.5 hours per week and is offered on a Fixed Term Basis for a period of 6 months. England, Essex, Harlow
Recuriter: Essex County Council

Senior Practitioner - Family Support & Protection

Essex County Council
Negotiable
Please note this is a fixed term contract or secondment opportunity until December 2020 In Essex County Council we are "Serious about Social Work". H England, Essex, Basildon
Recuriter: Essex County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores what impact the increase to the Public Works Loan Board rate have on councils’ capital schemes and why adopting AI will not just improve customer service response times for councils.

This issue also finds out how local government pension funds are backing infrastructure projects and calls on local government to get better value from its technology spend.

Register for your free magazine