Interserve finances hit by Glasgow energy project

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INTERSERVE has reported a pre-tax loss of £33.8 million for the first six months of 2016.

The construction giant said it was exiting the energy from waste sector following a £70 million hit on a project for Viridor’s Glasgow gasification plant. The company said in May that the issues related to the design, procurement and installation of the facility along with challenges with the supply chain.

Turnover increased by 2.4% to £1,632.9 million while Headline total operating profit stands at £62.9 million (up 2.1%).

Chief executive Adrian Ringrose said, “Trading in the first half of the year, across the vast majority of our divisions and our regions, has been good, in markets that offer both opportunities and challenges. We delivered a strong cash performance and grew revenue and headline operating profit.

“We are taking action to exit the energy from waste sector. Our assessment of the aggregate impact of exiting this sector is in line with the £70 million exceptional charge we announced in May. 

“Despite the increased political and macro-economic uncertainty following the UK’s EU referendum, our outlook for the current year remains unchanged. This, together with our significantly improved cash flow and healthy future workload, underpins the board’s confidence in our prospects and a further increase in the interim dividend.”