Interserve shares fall to lowest point in 30 years

Shares at construction and outsourcing firm Interserve have fallen by more than 10% to their lowest level since over 30 years as concerns mounted over its finances.

The company’s shares closed from 45.18p to a low of 39.03p last night, completing a decline of more than 90% in the past five years.

Interserve shares fall to lowest point in 30 years

An update from waste-to-product manufacturer Renewi last week revealed that Interserve had missed a deadline on a joint venture in Derby that is working to produce energy from waste. Investors now fear it may be forced to set aside more cash in compensation.

The construction and support services giant continued to struggle despite agreeing a rescue deal with lenders in March.

Interserve accepted a £300 million rescue plan in March at a time of pressure on the outsourcing and construction sector that prompted the collapse of Carillion at the start of the year.

Speaking about progress at the Derby plant, a spokesperson said: “We continue to make progress on the Derby energy from waste project and can confirm that the construction completion certificate has been achieved. The plant is operational and already receiving waste, and we continue to commission the plant in readiness for handover.”

The firm added today: “Interserve confirms that the implementation of the Group’s strategy and the Fit for Growth transformation programme remains on track and the Group continues to expect a significant operating profit improvement in 2018, in line with management’s expectations.”

Share icon
Share this article: