Interserve's trading performance before exceptional items is consistent with the trends outlined in its October market update, according to a statement from the company.
Future cash flows from energy from waste will be "broadly neutral", it adds, and net debt should peak in the first half of FY18 due to the phasing of cash flows relating to energy from waste costs which have already been provided, exceptional costs relating to restructuring actions, and the current refinancing activity. It says talks with the group's lenders are progressing and an announcement about longer-term funding arrangements will be made in due course. To establish a strong foundation from which to move forward, the new management team has undertaken a comprehensive review of the group's contract portfolio and a thorough review of its non-trading balance sheet items. The outcomes will be announced alongside a presentation of the group's longer-term strategy at its 2017 annual results presentation. The group says it is making good progress with 'Fit for Growth' - the three-year programme launched by management last October. Debbie White, Interserve's chief executive, said: "The new management team, and the board, have been working to stabilise the business and provide a sound foundation to continue to serve our customers effectively, underpin our future growth and to restore shareholder value. This work has focused on managing the balance sheet, conducting a thorough assessment of the contract portfolio, and introducing new management disciplines, processes and cost controls under the 'Fit for Growth' programme."