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Interserve shares plummet to lowest level in 30 years

Interserve

The share price of Interserve has fallen to its lowest point in more than 30 years.

Reading-based Interserve’s shares fell by more than 10% on Monday to 39p and today briefly fell below 30p before making a recovery to 40p.

Shares in the firm are now worth roughly £60M, down by more than 90% in five years.

The news follows a claim from waste-to-product manufacturer Renewi last week, which said that Interserve had missed a deadline on a joint venture on an energy-from-waste plant in Derby.

In the report, Renewi claimed there had been “significant progress” on the plant, but also outlined that Interserve had not completed construction work by the end of September as planned.

Interserve had planned for the plant to be fully operational by spring this year.

The company has previously said the delay will not be financially costly, however investors are now understood to fear the prospect of the company being forced to set aside money in compensation due to the hold-up.

Speaking of progress at the Derby plant, a spokesperson for Interserve said: “We continue to make progress on the Derby energy from waste project and can confirm that the construction completion certificate has been achieved.

“The plant is operational and already receiving waste, and we continue to commission the plant in readiness for handover.”

Earlier this year, it was reported that Interserve may have been forced to sell-off parts of its business to account for pre-tax losses of £244M.

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