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Jobs at risk as Interserve powers down

power lines 2by3

Interserve has shut down its power business, putting 70 jobs at risk.

A consultation period for Interserve employees will run to early April. The company said it will complete all contracted works, with the majority finishing by the end of June. 

The move is part of a review of all group operations in a bid to bring down a debt pile currently totalling more than £500M.

The closure of the power business is an attempt to “consolidate and centralise the industrial portfolio”, according to the construction and support services firm.  In January it said it was making progress with its three-year ‘Fit for Growth’ rescue programme which aims to increase efficiency and simplify the business. 

It forecast a better-than-expected 2018 profit last month, but revealed that net debt was expected to hit £513M in the first half of the year. This came in the wake of a profit warning in September after it found the costs of exiting the energy from waste business were significantly more than twice the £70M the company had anticipated

Interserve revealed its intention to close its EfW business in 2016. That decision contributed to a £94.1M pre-tax loss for the year. Its full 2017 results are expected in the coming weeks.

An Interserve spokesman said: “We can confirm we are undergoing an operational restructure within our industrial division.

“After careful consideration we have decided to close down our power business, as we look to consolidate and centralise our industrial portfolio.

“We are committed to completing all contracted works and anticipate the majority of projects will be complete by the end of June 2018.

“All employees affected have been informed of the decision, with a consultation period running until early April. We are working internally to ensure as many people are redeployed within the business.”

 

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