Interserve on track to raise margins this year

Aaron Morby 12 years ago
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Interserve is confident it can raise margins this year on the back of a bulging order book of £5bn.

A series of contract wins in the Middle East and UK at the end of last year will take orders for 2011 to £1.5bn.

Adrian Ringrose, Interserve chief executive, said: “Our strategy of focusing on support services and construction, whether together or as separate services, is clearly an attractive proposition for many clients.”

Interserve said it had bucked the downward market trend in the second part of 2010 to deliver strong profits despite the clampdown on spending.

In a trading statement ahead of its year-end results, Ringrose said: “In the UK we expect substantial opportunities in the coming years as the government seeks to effect structural changes in public service delivery and social infrastructure investment.

“We expect our margin enhancement programme in support services to continue to deliver improving performance which, in combination with a resumption of growth in equipment services, should mitigate our expectations of tougher trading conditions for project services following its strong performance in 2010.”

Interserve now operates out of 30 countries and last year extended its international reach with big investments in a construction business in India, a services company in Oman and an equipment services business in the USA.

Ringrose added: “Our international footprint and opportunities in UK outsourcing, continue to provide a platform for long-term growth at attractive margins.”

    Recent contract wins totalling £500m

    UK

  • Construction and refurbishment contracts worth £57m for three schools within the Sandwell BSF and £50m FM over 25 years.
  • £26m hospital development at Yardley Green, Birmingham, including associated mechanical and electrical services worth around £5m.
  • Additional work worth £29m in the development of Llandough Hospital near Cardiff.
  • Several support services contracts, each of three years’ duration worth over £28m, with William Hill, BNY Mellon and the University of Greenwich.
  • The provision of access services to Sellafield and Pembroke power station,each over a two-year period, worth an aggregate £8 million.
  • Place with 19 other contractors and consultants on the Northumbrian Water framework worth an estimated £1.5 bn over the next 10 years.
  • Qatar

  • £39m contract to build an energy centre and multi-storey car park in Doha
  • £29m award to build three new schools in Doha, including associated mechanical and electrical services.
  • Three further contracts, for RasGas (procurement, construction and installation services), Total (design, fabrication and testing) and QVC (maintenance services), worth more than £30m.
  • UAE

  • £30m contract to fit out the Sofitel Resort Palm Jumeirah hotel in Dubai.
  • £10m contract to improve existing roads and build new carriageways in the emirate of Umm Al Quwain.
  • A £7.5m contract for the construction of a new freeway in Fujairah.

Oman

  • £13m award for construction works related to two power stations in Sohar for GS Engineering.
  • £7m contract to extend existing accommodation facilities fo Renaissance Services.
  • A three-year contract with the UK Ministry of Defence to provide maintenance services and small works at Musanah air base near Muscat.

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