Mark Whitehead 18 March 2019

Interserve handed £660m of contracts before going into administration

Interserve handed £660m of contracts before going into administration  image

Construction and facilities giant Interserve was handed £660m of public sector contracts before it went into administration last week, market experts have revealed.

The company was taken over by administrators last week after shareholders rejected a rescue plan and immediately shifted to a company controlled by its lenders.

It meant that Interserve could avoid a Carillion-style collapse, though investors have seen the value of their shares wiped out.

The lenders who are now in control of Interserve Group include banks RBS and HSBC, and investors Emerald Asset Management and Davidson Kempner Capital.

The company says it is 'fundamentally a strong business and with a competitive financial platform in place'.

Figures from market analysts Tussell show last year local authorities awarded Interserve 16 contracts worth £61m – an increase from seven contracts worth £17m in 2017 – despite the company announcing a series of profit warnings.

Tussell says Interserve currently has 11 live contracts with UK councils worth an estimated £50m.

National secretary of the GMB union Rehana Azam said the Interserve case showed how 'obsessed' with outsourcing the Government had become.

She said: 'Awarding hundreds of millions in taxpayer funded contracts to troubled outsourcing companies is the height of irresponsibility – ministers have still not taken on board the lessons from the collapse of Carillion.'

Highways jobs

Service Manager – Network Management

Somerset County Council
£46,122 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Principal Traffic Control Engineer

Somerset County Council
£33,799 to £37,849 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Assistant Engineer

Bedford Borough Council
£31,371 - £32,878 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Clerk of Works

Bedford Borough Council
£27,905 - £30,507 + market rate supplement £2,630 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Technician

Bedford Borough Council
£27,905 - £30,507 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Local Government News

Latest issue - Local Goverrnemnt News

The June issue of Local Government News contains the full details of all the winning schemes in the 2019 Street Design Awards. From Children's Play to Pedestrian Environment, find out who has been recognised for their innovation and use of best practice.

This issue also explores how local government pension funds can hedge currency risk, how councils can best address the shortfall in school places, and an update on the number of authorities banning the use of Roundup over safety fears.

Register for your free magazine