Interserve will be investigated by the financial regulator over market disclosures and its handling of inside information.
The company will come under scrutiny by the Financial Conduct Authority for disclosures related to exiting the energy from waste (EfW) business between 15 July 2016 and 20 February last year, it announced this morning.
The construction firm set aside £70M to cover the costs of exiting EfW after its contract to construct the Glasgow Recycling and Renewable Energy Centre project was terminated in February last year, however the amount climbed to £160M.
It issued a profit warning in September last year when it said the costs had been more than expected and warned that its performance for the year would be “significantly” below previous expectations.
Interserve said it will co-operate fully with the investigation.