7 August 2018 | Herpreet Kaur Grewal
Construction and support services company Interserve has reported "significant operating profit improvement" compared to the second half of 2017, with profit up £11.5 million to £40.1 million.
The company has said its Fit for Growth programme is "on target to deliver £15 million savings in 2018 with £8 million secured in the first half" and significant activity ongoing to achieve £40-50 million annualised savings by 2020.
The results also show that equipment services revenue was lower as major infrastructure projects in the UK were not repeated in 2018. The financial statement added: "Order levels starting to improve as we enter the second half."
Debbie White, chief executive of Interserve, said: "The first half of 2018 was an important period for Interserve as the new management team took actions to bring stability to the business and agree the direction of the group's future strategy. The 'Fit for Growth' initiatives we are implementing are delivering material cost savings and will result in a simpler, more focused and more effective Interserve. The refinancing that we completed in April provides a firmer financial footing from which to execute these plans.
"Today we have a strategy that provides a clear direction, leveraging our areas of strength, where Interserve can provide compelling customer propositions, delivered with rigorous operational and financial discipline. Whilst there remains a significant amount of work to do, we have energy and momentum in the business as evidenced by the significant new contracts wins secured in the first half of the year.
"First-half trading performance was in line with our expectations. We continue to make progress on the resolution of our EfW projects, although risks to the programme still remain. We believe that the benefit of the actions taken in the first half underpin our unchanged full-year expectations, as we make further progress with the implementation of the group's strategy and the Fit for Growth transformation programme."