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22 April 2018
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INTERSERVE SHARES FALL SHARPLY FOLLOWING PROFIT WARNING

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Year will fall below 'previous expectations' © iStock


14 September 2017 | Martin Read


Shares in Interserve Group dropped by 50 per cent this morning following a profit warning issued at the beginning of the day.

 

The company, reporting on current trading, explained that business in the UK during the months of July and August had been disappointing, “particularly in support services”, with the board now believing that “the outturn for the year will be significantly below its previous expectations”.

 

While progress on contracts within Interserve’s exited energy from waste business was continuing, “the anticipated timing and complexities of completion mean that the board now considers it likely that the final costs will significantly exceed the £160m currently provided.”

 

“The board continues to believe that the group will be able to operate within its banking covenants for the year ended 31 December 2017.”

 

A further update is to be provided in due course. New Interserve chief executive Debbie White took over the role from Adrian Ringrose at the beginning of this month.