Firm’s forecast-beating profits
March 17, 2009
Support services and building firm Interserve cheered investors as it looked forward to “robust” UK markets and posted forecast-beating annual profits.
The Reading-based company said healthy workloads in the public sector and regulated industries such as utilities – accounting for two-thirds of revenues – would offset a “challenging and uncertain” private sector.
Shares jumped 18 per cent as Interserve also posted a 16 per cent rise in pre-tax profits to £85.2 million, ahead of City expectations.
The firm, whose clients include blue-chips such as British Airways as well as several Government departments, boasts a £6.2 billion order book and has landed 79 per cent of this year’s projected revenues already.
The results came with news of a further £200 million in contract wins – facilities management deals for Ealing Council in London and the Leeds Partnership NHS Foundation Trust, as well as two schemes in Dubai.
Although activity is slowing in Dubai, the firm has a broad geographical spread to other more buoyant markets across the region such as Qatar and said it had a “strong base” to continue its growth.
The company also underlined its confidence as it upped the final dividend to investors, bringing shareholder payouts almost 5 per cent higher over 2008.