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Interserve mulls RMD Kwikform sale

Adrian Ringrose Interserve 2by3

Interserve is to consider selling equipment services business RMD Kwikform.

The construction giant said it was launching a strategic review of the formwork, falsework and ground shoring company.

Chief executive Adrian Ringrose (pictured) announced the move as he unveiled group revenue growth of 10% to £3.2bn in the year to 31 December 2015.

Equipment services revenue was up 8% to £211M, and the division recorded an 8% operating margin.

Ringrose told New Civil Engineer the strategic review was being carried out in light of the group’s recent growth.

“Can we keep going with everything we are doing, or do we need to be a little bit more discerning, or think that a business could flourish with different owners or investors?” he said.

“No option is off the table. The review will take months rather than weeks. This is a fantastic business with a great reputation.”

Group pretax profit grew 28% to £79.5M in 2015, with headline pre-tax profit up 9% to £115.4M.

Interserve’s UK construction revenue increased by 7% to £1bn in 2015, although this was achieved on a 0% profit margin.

“Supply-chain pricing pressures continued to be felt and the division’s performance was adversely impacted by three loss-making energy process contracts,” said the company.

Ringrose told New Civil Engineer that Interserve was likely to move away from energy-from-waste building work because of the three problem contracts.

“We have ambitions in infrastructure but we need to develop the business with better results than has been the case because of three difficult contracts that have hit us quite hard,” he said.

“We want to continue working in civil engineering but with less emphasis on energy-from-waste.”

New Civil Engineer reported last year that Interserve had been named as the first main contractor to be certified as Building Information Modelling (BIM) Level 2 compliant.

You can watch a progress video of the Widnes biomass energy plant construction project – on which RMD Kwikform equipment has been used for elements of formwork and shoring – here.


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