Mark Whitehead 30 April 2018

Outsourcing giant Interserve the latest to hit problems

Outsourcing giant Interserve the latest to hit problems image

A further outsourcing company supplying local government is facing uncertainty as it revealed huge losses and a tumbling share price.

Shares in construction and support services giant Interserve today fell 13% after it announced pre-tax losses had grown to £244m from £91.1m a year earlier.

Its revenue remained fairly stable but its debt nearly doubled from £274m to £502.6m.

The company blamed the losses on 'margin pressure on contracts for the British government' and a £217m loss on a deal to build waste-to-energy plants.

The news follows the collapse in January of construction and services company Carillion with an estimated £7bn of liabilities and the announcement last week by outsourcing giant Capita of £513m losses and a major reorganisation to tackle £1.7b debt.

UK-based Interserve operates in more than 40 countries worldwide and lists local government among the sectors it serves.

Earlier this month York City Council terminated a £9m project with the company to redevelop its historic Guildhall saying its cost estimates were too high.

Last October Interserve announced a transformation plan to save £15m this year which included an estimated 1,500 job losses.

Interserve chairman Glynn Barker (pictured) today admitted the group’s financial performance was 'extremely poor'.

He said many of the company’s problems were 'self-inflicted mistakes of the past' with 'inadequate financial and operating discipline'.

He added: 'The resulting stress and uncertainty have led to anxiety amongst our staff, suppliers and customers and significant loss of value for our shareholders from the fall in our share price.'

SIGN UP
For your free daily news bulletin
Highways jobs

Service Manager - Children in Care

Pembrokeshire County Council
£46,514 - £48,412
The successful candidate will need to be able to manage a large number of competing and at times conflicting priorities, whilst... Pembrokeshire (Sir Benfro)
Recuriter: Pembrokeshire County Council

Neighbourhood Services Divisional Manager

Northumberland County Council
£60,253
You will provide professional and technical advice on all Neighbourhood Services functions. As an effective leader you will coordinate and manage... Northumberland
Recuriter: Northumberland County Council

Service Access Officer

Kirklees Metropolitan Council
£18,497 - £20,021
As a Service Access Officer you will deal with general and emergency telephone enquiries on behalf of numerous council services, outside of Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Property Services Officer

Royal Borough of Greenwich
£31.548 - £33.291
You will be responsible to the ordering manager and will undertake the inspection of properties to specify repairs and improvements within... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Social Work Assistant – Multi Agency Safeguarding Hub (MASH)

London Borough of Bexley
£22,377 - £23,607 per annum
This is an excellent opportunity for candidates who have a relevant qualification, have had some experience of working with children and Bexleyheath, London (Greater)
Recuriter: London Borough of Bexley

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue