Interserve Construction hit by losses on three projects

Aaron Morby 7 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

Pagabo names £1.6bn civils framework winners

Forty eight firms secure spots on new civils and infrastructure framework
2 days ago

£1.25bn Stonehenge tunnel job winner revealed

Spanish, Italian, and Austrian JV scoops A303 Amesbury to Berwick Down scheme
2 days ago

Altrad swoops for Doosan Babcock

Over 4,000 staff will transfer to the fast-expanding industrial services group
2 days ago

Suspended jail sentences after fatal roof fall

Court sentences two men after hearing of safety failures on over-cladding job
2 days ago

McAleer & Rushe on track for record £425m revenue

Revenue and profit return to pre-pandemic level as focus grows on high-rise flats
2 days ago

Domis on the hunt for subcontractors and suppliers across Cornwall

Contractor hosting meet the buyer event to set-up local supply chain for string of major projects
2 days ago

Lendlease £140m hospital claim to hit High Court

Cramlington hospital trust claims for new temporary building while remediation works carried out
2 days ago

Balfour bags £50m Piccadilly Line upgrade

First award under latest London Underground High Voltage Power framework
2 days ago

Cash runs out on HS2 old Curzon Street station refurb

Laing O'Rourke/Murphy JV halts work on historic station renovation
3 days ago

MPs call for cut in building demolitions to save carbon

Watchdog MPs set out urgent plan to prioritise retrofit and reuse of buildings over new build
3 days ago

Structure Tone stems losses as order book grows

Fit out specialist racks-up £4m loss but is confident of turnaround this year after restructuring
3 days ago

Construction leaders launch inflation busting taskforce

All sides of industry urged to work together rather than row over price hikes
3 days ago

HG Construction names next chief executive

Adam Quinn, son of one of the MBO founders, to take the reins in July
3 days ago

Lendlease Stratford IQL blue towers approved

35- and 14-storey hexagonal blocks will provide 350 flats
3 days ago

Track worker killed by train was controller of site safety

Distracted rail worker "lost awareness of his position relative to the line the train approached on"
3 days ago

MechFS went down owing £9.5m to supply chain

Subcontractors left holding millions in worthless invoices
4 days ago

HG Construction profit jumps 50% to £25m

Multi-storey homes and student accommodation jobs drive sales to record £243m
4 days ago

Go-ahead for Newcastle’s largest build to rent project

Work to start on 14-storey flats complex in the autumn
4 days ago

Contractors wanted for £288m Northumbrian Water frameworks

Ten lots up for grabs under latest major civils deal
4 days ago

Plans in for 142-room Exeter net zero hotel

RED Construction to build first of hotel developer's planned chain of net zero hotels
4 days ago

Rail workers vote to strike over maintenance job cuts fears

Network could grind to a halt next month
4 days ago

Race for £100m Immingham ferry terminal job

AB Ports aims to start work in mid 2023
5 days ago

Sisk wins Stockport £60m Weir Mill restoration

Work to start next month on 250 flats scheme
5 days ago

Developer swoops for 1,000-flats landmark Leeds site

Revised plans to be submitted by the end of the year for start soon after
5 days ago

Dominvs seals £173m funding for 713-bed student job

HG Construction to start major Hammersmith student complex in November
5 days ago

Briefings start for £1bn Midland Mainline Electrification plan

Market engagement starts for next seven sections covering 139km route to Sheffield
5 days ago

Forterra pushes back £27m factory refurb plan

Supply chain shortages hit project as brick prices rose another 12% last month
5 days ago

Speedy Hire results slowed down by KPMG

Hire giant left "frustrated and disappointed" by delay request from auditor
5 days ago

London office starts set to surge over next 6 months

Deloitte Crane Survey predicts jump in starts in Capital despite high building costs
6 days ago

Fit-out firm BW Workplace slips into the red

£5.2m backdated R&D tax credit deal lifts after tax performance
6 days ago

Contractor services