Interserve: 2005 better than expected

Interserve expects to report strong growth when it unveils its full year results on 13 March as the majority of its businesses performed better than expected.

Facilities Services made strong progress, "fuelled by volume and work-scope increases on existing contracts and the ramp-up of activity on recently-won business". Business efficiency programmes have yielded margin improvements.

Project Services performed "very well", with the UK described as healthy and trading in the Middle East being excellent (buoyed by high volumes, particularly in Qatar).

However, Industrial Services' performance was weaker than expected, due to the continued transition from heritage contracts and investment in management resources and systems.