Mark Whitehead 18 March 2019

Interserve handed £660m of contracts before going into administration

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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Educational Psychologist

The Royal Borough of Kensington & Chelsea Council
£57072 - £58072 per annum
We are looking for qualified and HCPC registered Educational Psychologists or Year 3 Trainee Educational Psychologists to join our thriving, progressi England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Senior Educational Psychologist

The Royal Borough of Kensington & Chelsea Council
£66555 - £67555 per annum
As a result of internal promotions within our service we are looking for committed Senior Educational Psychologists to join us in our work to shape th England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Principal Accountant

Durham County Council
£47,181 to £51,356 p.a. (Grade 13)
Durham County Council is the largest council in the North East, we have a budget of around £1.3 billion which helps us provide services to more than 5 Durham
Recuriter: Durham County Council

Mechanical Foreman

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
A vacancy has arisen within Building and Facilities Management for a Mechanical Foreman working full time 37 hours.   WHAT IS INVOLVED?    Within a co Durham
Recuriter: Durham County Council

Occupational Health Physiotherapist

Durham County Council
£40,777 to £45,091 p.a. (Grade 11)
An exciting opportunity has arisen with Durham County Council to join our well established ‘in house’ Occupational Health Service in making a positiv Durham
Recuriter: Durham County Council
Linkedin Banner