12 August 2015 | Herpreet Grewal
Interserve has reported revenue growth of 16 per cent in its half-year results for the six months ended 30 June 2015.
But it says the rise in the National Minimum Wage would have a detrimental effect on its support services business.
The international support services and construction group reported that it had won £2 billion of new business in the period.
It cited significant contract wins with both new and existing clients including London Underground, MTR Crossrail, KeolisAmey Docklands, B&Q, BS Stanford, BP Khazzan (Oman), RasGas (Qatar) and the Dubai Aviation City Corporation (UAE) as instrumental in the growth it had experienced.
Its headline total operating profit was up 12 per cent.
Adrian Ringrose, chief executive of Interserve, said: "We have made good progress in the first half of the year in markets that offer both opportunities and challenges. We have delivered volume growth across the board, and strong profit performances in our support services, equipment services and international construction businesses."
Ringrose added that Interserve expected "the premium to the National Minimum Wage announced in the Budget to have an initial adverse impact on margins in the UK Support Services segment of £10 to £15 million in 2016, receding over the next few years thereafter as the change is priced in to relevant contracts".
But he said demand in main markets "continues to strengthen" and that the company's financial position "remains strong".