Economy Interserve’s 2017 loss widens, calls performance ‘extremely poor’

Interserve’s 2017 loss widens, calls performance ‘extremely poor’

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Interserve offices are seen in Twyford, Britain January 17, 2018.

British business support and construction services provider Interserve Plc (IRV.L) said on Monday its financial performance was “extremely poor” last year, and reported a wider full-year pretax loss.

An inefficient operating model and excessive cost structure left the group exposed to weaknesses in the UK performance of support services and construction unit in addition to a further deterioration in the energy-from-waste business during the middle of the year, the company said in a statement.

Interserve, which winding up its energy-from-waste business and the power business, said it incurred a 215.2 million pound charge, in addition to goodwill impairment.
 “We have made good progress in dealing with the challenges of progressing our exit from Energy from Waste but significant risks clearly remain,” the company said.The charges led to a pretax loss of 244.4 million pounds for the year ended Dec. 31, compared with a loss of 94.1 million pounds a year earlier.

Revenue rose marginally to 3.25 billion pounds from 3.24 billion pounds.

Interserve, which warned in October that it may breach covenants after a trading downturn, had reached an agreement with its creditors to secure funding in March.

Shareholders approved the funding plan on Friday.

Interserve’s year-end net debt increased to 502.6 million pounds, from 274.4 million pounds in 2016.