Cabinet Office reassures public sector over Interserve

17 Jan 18

The government has moved to reassure public sector clients of Interserve that the firm will not follow rival Carillion into collapse.

A Cabinet Office spokesperson said: "We monitor the financial health of all of our strategic suppliers, including Interserve.

“We are in regular discussions with all these companies regarding their financial position. We do not believe that any of our strategic suppliers are in a comparable position to Carillion." 

Interserve is also a construction and facilities management firm.

It last week issued a statement on its finances which said its 2018 operating profit was “expected to be ahead of current market expectations” but that “constructive discussions with lenders over longer-term funding are progressing”.

The statement said it anticipated net debt at year-end 2017 would be some £513m, “reflecting the significant outflow in the year relating to energy from waste, a normalisation of trading terms with our supply chain and exceptional costs”.

Chief executive Debbie White said: “The new management team, and the board, have been working to stabilise the business and provide a sound foundation to continue to serve our customers effectively, underpin our future growth and to restore shareholder value.

“This work has focused on managing the balance sheet, conducting a thorough assessment of the contract portfolio, and introducing new management disciplines, processes and cost controls under the ‘fit for growth’ programme.”  

Interserve’s website shows local government, education, health and transport among 21 fields in which the company operates.

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