Interserve upbeat over results

International construction group Interserve said it is trading in line with expectations after securing over £1.5bn of new work in 2010.

In a trading update in advance of its annual results announcement on 9

March 2011, Interserve said it delivered a stronger performance in the second half of the year compared to the first half of 2010.

Interserve announced financial close on a £63m schools construction and facilities management contract with St Helens Council in December.

Interserve is undertaking construction work at Rainford High Technology College and De La Salle School, at a capital cost of £48m, part of which will be financed through a private finance initiative structure.

Interserve will subsequently deliver facilities management services at Rainford worth £15m over a 25-year period.

Agilisys, a partner of Interserve-led consortium Environments for Learning, will be providing ICT equipment and related managed services at both schools.

In a statement, Interserve said: "The Group secured over £1.5bn of new work in 2010, contributing to a future workload of over £5bn, of which around £1.5bn relates to 2011.

"Following the financial close of the St Helen's schools programme in December the Group now manages a portfolio of 21 financially-closed projects, of which 13 are operational. These assets represent a significant investment commitment of more than £50m, around half of which has already been paid.

"We anticipate that trading conditions in 2011 will be stable compared with 2010. In the UK we expect substantial opportunities in the coming years as the government seeks to effect structural changes in public service delivery and social infrastructure investment.

"Accordingly, despite the uncertainties around the near-term impact of changes to UK public expenditure plans, our substantial future workload; our international footprint and opportunities in UK outsourcing, continue to provide a platform for long-term growth at attractive margins."

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