Interserve turnover up

Interserve, the international services, maintenance and building group, has revealed that turnover was up 5.9 per cent to £1.9 billion for the year ended 31 December 2009 after winning more than £2 billion of contracts in 2009.

In it interim report the other highlights included:

• Group visibility: 80 per cent of anticipated⁵ 2010 revenues, 58 per cent of anticipated 2011⁵ revenues (prior year comparables: 79 per cent and 42 per cent respectively)
• Won work with a whole-life value of more than £2 billion in 2009, augmented by contract awards in 2010 to date of c. £500 million
• Net debt reduced by 65.8 per cent to £37.3 million, representing cash conversion of over 200 per cent⁶
• Significant actions successfully completed to reduce pension funding shortfall and future volatility – accounting deficit (net of taxation) reduced by 37.7 per cent to £68.6 million

Chief Executive Adrian Ringrose commented, “Interserve made good progress during difficult conditions in 2009. Whilst the Group is not immune to the current economic challenges, it benefits from a solid and balanced UK position, continued opportunities internationally, good revenue visibility and a strong balance sheet. Given the risks in the external environment, 2010 will be a challenging year, particularly in the first half. However, we are focused on taking advantage of the opportunities for renewed growth, as and when our markets recover. Our confidence in the Group’s future prospects is reflected in the Board’s recommendation of the continuation of our progressive dividend policy.”