Mark Whitehead 14 November 2018

Shares in outsourcing giant Interserve hit 30-year low

Shares in outsourcing giant Interserve hit 30-year low image

Fresh concerns have been raised over the future of outsourcing giant Interserve following a huge drop in its share price.

Shares in the UK-based global construction and support services company, which has several contracts with local authorities, hit a 30-year low on Monday amid speculation it may not be able to raise the cash it needs to continue operating.

They have rallied slightly since but continue to be volatile and far below their historical value.

The company hit back claiming its transformation programme adopted last year is on track and it expects to make improved profits this year.

It is the latest outsourcing company causing concern after construction specialist Carillion went bust earlier this year leaving the taxpayer with a £148m bill and forcing many local authorities forced to find alternative contractors.

Interserve has operations in more than 40 countries providing construction, equipment, facilities management and 'citizen services' in sectors ranging from aviation to retail, oil and gas, the nuclear industry and leisure services.

It lists local government as one of its major sectors, claiming: '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.'

Earlier this year York City Council terminated a £9m contract with Interserve amid spiralling costs to refurbish its historic Guildhall.

In October last year the company announced a transformation plan to save £15m which included an estimated 1,500 job losses.

It admitted at the time its financial performance was 'extremely poor' and many of its problems were 'self-inflicted mistakes of the past' with 'inadequate financial and operating discipline'.

Today it said in a statement: 'Interserve notes recent press commentary surrounding the Group and the movement in its share price.

'Interserve confirms that the implementation of the Group’s strategy and the Fit for Growth transformation programme remains on track and the Group continues to expect a significant operating profit improvement in 2018, in line with management’s expectations.'

Photo: Graham Richardson/flickr

Declaring a climate change emergency image

Declaring a climate change emergency

Local authorities can play a key role in tackling climate change – and there is plenty for them to do. Never before has thinking globally and acting locally been more important, says Mark Whitehead.
Open letter to Boris Johnson image

Open letter to Boris Johnson

The MJ's editor Heather Jameson asks the new PM a simple question: do you want to fund local government or do you want to scale back services to the basics?
Highways jobs

DEPUTY DIRECTOR

City of Bradford MDC
£102K
Big and diverse, Bradford is the UK’s youngest city Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Corporate Director, Resources

Buckinghamshire Council
circa c. £150,000
This is a once in a lifetime opportunity for an exceptional individual to help to shape the future of Buckinghamshire Buckinghamshire
Recuriter: Buckinghamshire Council

Assistant Director, Assets

Sutton London Borough Council
Up to £104,514 per annum
The role will lead on ensuring that our assets support the delivery of the Council's priorities. This will range from... Sutton, London (Greater)
Recuriter: Sutton London Borough Council

Principal Finance Officer

Redbridge London Borough Council
£42,684 and £45,585
You will work closely with the Financial Strategy Manager and have regular contact with the wider finance team Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Complex Complaints Officer

Redbridge London Borough Council
£34,794 - £36,711 per annum
ou would be joining the London Borough of Redbridge at an exciting time, joining an ambitious new Housing Needs Service Redbridge, London (Greater)
Recuriter: Redbridge London 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