Interserve today reported that profits had fallen from to £27.3M in the six months to 30 June compared with £40M in the same period last year. However, its construction business total operating profit increased from £18.1M to £23.5M in the UK and Middle East.
It said in the UK over half of the business’s activity is generated via PFI and long-term framework contracts that deliver a relatively predictable flow of work.
The UK’s future workload has remained broadly stable compared to the strong year-end position, at around £1.2bn.
However, it added that activity levels were “moderating” as a result of government cuts in public spending, which accounted for the drop in revenue from £406.4M to £380.8M.
“Trading in the half-year was in line with the board’s expectations,” said Interserve chief executive Adrian Ringrose. “Project Services delivered an excellent result, Support Services is making good progress based on moving performance in several key public sector contracts to planned levels of profitability and Equipment Services, after an exceptional 2009, performed creditably in a challenging environment.”