Mark Whitehead 14 November 2018

Shares in outsourcing giant Interserve hit 30-year low

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

SIGN UP
For your free daily news bulletin
Highways jobs

Financial Assessment Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,510 - £45,564 per annum
Financial Assessment Officer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

HDRC Partnerships Officer

Essex County Council
£26786.00 - £31512.00 per annum + + 26 Days Leave & Local Gov Pension
HDRC Partnerships OfficerFixed Term, Full Time£26,786 to £31,512 per annumLocation
Recuriter: Essex County Council

Special Educational Needs (SEN) Delivery Lead

The Royal Borough of Kensington & Chelsea Council
Negotiable
Lead the daily operations of our SEN service, ensuring every child receives the support they deserve. Working as an SEN Delivery Lead means being at t England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Complex Case Officer (SEN)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Support children and young people with complex needs, ensuring they receive the right help at the right time. Working as a Complex Case Officer in ou England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Events Officer - Harlow District Council

Essex County Council
Up to £18.28 per hour
Events Officer- Harlow District CouncilHarlow, Essex Full time, Temporary £18.28 per hour PAYE Closing Date
Recuriter: Essex County Council
Linkedin Banner