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

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
49 mins ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
6 hours ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
5 hours ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature in housing association's line-up
6 hours ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
6 hours ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
6 hours ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
3 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
3 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
3 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
3 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
3 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
4 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
4 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
4 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
4 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
4 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
4 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
5 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
5 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
4 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
5 days ago

Consultant quartet win Government estate upgrade deal

Government Property Agency selects Arcadis, Tetra Tech, AtkinsRéalis and McBains
5 days ago

Resi towers pioneer to transform Liverpool site

Beetham founder Hugh Frost to help develop 1,200 new homes
6 days ago

Construction Manager of the Year crowned

Galliford Try's Barry Kingscote wins coveted prize: Full list of winners
5 days ago

Landsec £250m London terraced office job approved

Skanska tipped for 20-storey Hill House scheme near Fleet Street
6 days ago

Lendlease tops March contracts league

BAM and ISG rank third with big contract wins
5 days ago

Vistry strikes deal with Homes England for 1,000 units

Firm's timber frames factory will supply most of the Midlands houses
5 days ago

Morgan Sindall go-ahead to build 23-storey Salford resi job

Funding deal with CBRE allows latest project on bank of River Irwell to proceed
6 days ago

Unite Students gains planning for London and Bristol schemes

RG Group will build landmark Stratford tower and Freestone Island projects
6 days ago

Rolls-Royce gets go-ahead for 1.1m sq ft expansion in Derby

Major expansion of Raynesway campus planned to met submarine fleet orders
6 days ago

Contractor services