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Principale » Problems mount at Interserve as waste costs keep spiralling

Problems mount at Interserve as waste costs keep spiralling

14 Septembre 2017

Interserve was plunged into a £94m loss previous year after making a £160m provision for exiting its waste business after revealing serious problems at its Glasgow Recycling and Renewable Energy project.

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

Interserve first alerted shareholders to problems on the £154m project for client Viridor back in May 2016, then estimating the project would cost it £70m.

In a brief trading update, the small cap firm said trading in the United Kingdom in July and August was disappointing, particularly in support services, but also in its construction division, leading to its warning.

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It also warned that the rising cost of pulling out of its "energy from waste" business would be "significantly" more than the £160 million already budgeted for.

While Interserve posted profitable interim results last month for the first half of 2017, thanks to its facilities management operations, it continues to lose money in its United Kingdom construction activities, making an operating loss of £2.0m for the six months to June 2017.

The news comes just two weeks after Debbie White joined the company as chief executive, taking over from Adrian Ringrose who (despite having only just turned 50) has now started to build a non-executive portfolio, chairing industrial painting contractor Taziker Industrial and pipeline monitoring specialist Syrinix.

"Further progress continues to be made on contracts within our exited Energy from Waste business. A further update will be provided in due course".

Problems mount at Interserve as waste costs keep spiralling