Interserve robust on prospects for 2009

Interserve continues to enjoy “strong trading” and is enthusiastic about the coming year.

Adrian Ringrose, chief executive, says: “Given the excellent visibility of our revenues, the broad range of opportunities in our markets and our robust balance sheet the board is confident of demonstrating further progress in 2009.”

In a trading update published on the Stock Exchange this morning (Wednesday), Interserve says that revenues (i.e. turnover) will rise in the coming year.

Interserve continues to win new business in the UK in strong defensive sectors such as central and local government, education and health, though trading conditions in some private sector markets are becoming more challenging.

In all, 67% of group turnover comes from the public and privatised sectors. Interserve has already secured 66% of its anticipated 2009 turnover – ahead of the figure of 61% at the same time last year.

Interserve has pushed to develop as an international business and this element now generates 45% of group profits.

Overseas work “remains on track” and in the Middle East operations continue to deliver “excellent” results.

New contracts announced this morning:

• One of four players on a framework contract for Mapeley with a value of £70m to Interserve.
• In Qatar, the group’s largest market in the Middle East, a £65m contract to build tanker-maintenance infrastructure.
• Financial close of the Derry schools PFI contract in Northern Ireland, adding £20m in facilities management revenues.
• A specialist arts college at Kingswood in the East Midlands worth £21m.

These contracts, plus the Defra support contract announced six weeks ago and estimated at a value of £500m, all contribute to Interserve’s record future workload of £6.2bn.

Interserve chose to flag up decreases in its pension fund asset values but then offered nothing by way of concrete change.