Interserve shares tumble 20%

Aaron Morby 4 months ago
Share

Shares in Interserve fell 20% on Thursday as fears grew about the performance of contractors on Government outsourcing contracts in the wake of Capita’s profit warning this week.

The fall wiped out the gains achieved over the last few months as new chief executive Debbie White worked to restore investor confidence with a cost-cutting plan, despite debt expected to approach £600m this year.

A year ago Interserve shares stood at 352p but have since slumped 75% after a series of fresh profit warnings to yesterday’s close of 86p.

This morning shares recovered 5% in early trading.

Jittery investors sold stocks despite Cabinet Office moves to reassure the markets that it was watching the firm carefully and Interserve was not facing a similar position as Carillion.

Three weeks ago White said negotiations with banks were progressing with a further statement about longer-term funding due to be delivered shortly, ahead of testing of the Interserve’s year-end covenant position, which has been deferred until 31 March.

 

Latest news

Morrison Utility changes private equity owners

European private equity firm takes control of £1bn infrastructure services group
3 hours ago

Liverpool to launch plans for business district expansion

Council promises to tackle looming shortage of available office space
3 hours ago

Skanska signs £141m landmark Knightsbridge rebuild

Keltbray starts piling work after complex site clearance job
3 days ago

Bank launches £100m loan fund to help Hinkley suppliers

Lloyds keen to give construction companies a leg-up onto nuclear supply chain
4 hours ago

Homes for England launches consultants framework

Homes England to start bid race for major multi-disciplinary framework by end of May
3 hours ago

Wates Living Space looking for new subcontractors

Specialists invited to Meet the Buyer event: Register now
4 hours ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
3 weeks ago

Contractor saved after being sunk by the “Carillion effect”

Directors buy Blue Square Building out of administration saving 100 jobs
3 days ago

Birmingham puts firms on alert for £2bn framework

Balfour Beatty, Bouygues, Morgan Sindall and Willmott Dixon face fight to renew places
3 days ago

Watkin Jones to start £68m Reading build to rent scheme

M&G and Lochailort forward fund 315-flat Thames Quarter high-rise project
3 days ago

Government to consult on banning combustible cladding

Government bows to pressure from public, industry and MPs
4 days ago

Caddick’s £300m Leeds SOYO scheme approved

Work to start later this year on 515-home New York Square first phase
4 days ago

Unite property director takes helm at Watkin Jones

Richard Simpson to take over from Mark Watkin at the start of 2019
3 days ago

Green light for £56m Warrington private rental scheme

High Street Group prepares to start another PRS scheme in £340m pipeline
3 days ago

ISG wins two Edinburgh hotel builds worth £40m-plus

Hospitality sector expertise books Premier Inn and Yotel projects
4 days ago

Seddon sets up mental health hotline for staff

Tragic suicide of young painter inspires new campaign across the company
4 days ago

Combustible cladding escapes ban in Hackitt Report

Post-Grenfell report calls for CDM-style chain of responsibility policed by new regulatory body
4 days ago

Trio net £1.3bn Clyde submarine base framework

VolkerStevin, Kier Graham Defence and Morgan Sindall secure 10-year work programme
4 days ago

Theresa May pledges £400m to strip Grenfell-type cladding

Government will pay for retrofit work on 158 tower blocks
5 days ago

Retiring Van Elle boss sells shares for £4.8m

Outgoing chief executive Jon Fenton sell 7% stake in AIM-listed piling group
4 days ago

British Land braced for jump in construction costs

Developer expecting build inflation of 3-4% next year
4 days ago

Countryside to open modular panel timber frame factory

Mixed tenure partnerships division now bigger than private house building
4 days ago

North Midland launches development arm

Strong start to year but problem Telecoms division continues to dog results
4 days ago

Global tunnel expert to head HS2 Align JV team

Bouygues, Sir Robert McAlpine, and VolkerFitzpatrick appoint new leader for £965m contract
4 days ago

Scaffolder hit by 500kg bridge panel during demolition

Court hears how victim left with multiple injuries after demolition job went wrong
5 days ago

London Mayor pledges to build 10,000 council houses

New fund set up to kick-start council house building in the capital
5 days ago

Russells wins second office refit at NOMA site

Work starts on Dantzic warehouse conversion to offices in Manchester
5 days ago

Carillion’s board savaged for recklessness, hubris and greed

Watchdog MPs single out Richard Adam, Richard Howson and Philip Green
5 days ago

Carillion probe MPs call to break-up hold of Big Four accountants

Pension and Financial Reporting Regulators slammed as too timid in challenging bosses and bean counters
5 days ago

Graham / Hochtief JV set for Brent Cross infrastructure deal

Works will pave the way for £1.4bn shopping centre revamp
5 days ago

Contractor services