Interserve Construction hit by losses on three projects

Aaron Morby 8 years ago
Share

Interserve’s construction arm is battling with a trio of loss making projects in the UK after being hit by problems with subcontractors.

The group warned about the problem energy process contracts in its latest trading statement for the year.

Interserve said its Middle East construction business was performing well and in the UK the building and fit-out businesses performance was ‘encouraging.’

But the construction division has been dragged down by the unfinished projects within its infrastructure business.

“This is due in large part to subcontractor insolvencies and the consequential impacts on project timing and costs,” said the firm this morning.

“Our involvement in the delivery of these contracts is substantially complete. Expectations for the full-year are for a break-even performance in the UK construction segment.”

One of these projects is believed to be a waste incinerator in Kidderminster, Worcestershire. A bust-up with main contractor Hatachi Zosen Innova saw Interserve’s civils contract suddenly cancelled during the summer over delays.

The group performance will be in line with expectations as Interserve’s equipment services continues to deliver outstanding growth, fuelled by strong demand and benefitting from the increased scale of the hire fleet in which we have invested significantly in recent years.

“Trading is particularly strong in parts of the Middle East, the Far East and the UK, more than off-setting volume reductions from the cyclical downturn in Australia.”

Support Services has continued to perform well, including in UK frontline public services through the successful mobilisation of the Transforming Rehabilitation programme.

Anticipated year-end net debt remains unaltered in the range £270-300m, while 60%  next year’s has been revenues secured as at the end of Q3 in line with last year’s position.

Since August, Intereserve has secured several new contracts and extensions with clients such as Siemens; Hilton Hotels; Petrofac; Qatar Cool; the UK’s Department for Transport; Durham, York and Warwick Universities; Scottish Power and Northern Powergrid.

 

Latest news

Police ban mobile cranes from road over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
3 mins ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
4 hours ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
9 hours ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
8 hours ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
9 hours ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
1 day ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
10 hours ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
10 hours ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
1 day ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
1 day ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
1 day ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
2 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
1 day ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
1 day ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
1 day ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
2 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
2 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
3 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
2 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
2 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
2 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
2 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
2 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
2 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
3 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
3 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
3 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
3 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
5 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
6 days ago

Contractor services