Interserve divisions make encouraging progress

Each of Interserve's principal divisions made "encouraging progress" in 2003, according to chairman Mike Bottjer.

Facilities Services "continued to trade well, a position enhanced following the recent extension to the Metropolitan Police contract". Performance and enquiry levels improved in the Industrial Services division; the exit from the Townwork Tube & Fitting business "is proceeding to plan".

Progress was made in the UK and the Middle East by the Project Services arm (with exits from rail and Westpile "proceeding to plan"). The Equipment Services business performed well in the Middle East and Australasia, counteracting a "relatively quiet" UK market.

However, Bottjer noted the problems with the Liverpool housing maintenance contract: "The negotiations for the potential transfer of the group's contract with Liverpool City Council to a third party and the quantification of the group's retained pension obligations are expected to conclude in the near future."

Interserve will announce its full year results on 10 March.