INTERSERVE PLC 
By 8 January 2013
Interserve Plc, the international support services and construction group, today provides an update on 2012 trading in advance of its annual results announcement on 27 February 2013 and an update on board, senior management and advisory changesp
Highlights
- Trading in-line with the Board's expectations, reiterating our guidance
- Continued strong work winning
- Significant value realisation from PFI portfolio, generating £124.5m cash and £55m asset transfer into the pension scheme
- Further strategic progress in frontline public services and oil & gas services
Chief Executive Adrian Ringrose commented, "We have continued to perform well and in line with expectations, despite mixed market conditions. We are executing our strategy and remain on track to achieve significant medium term growth.
"We have realised significant latent value from our PFI portfolio, positioned the business to take advantage of strategic opportunities and materially reduced our pension deficit. The recent acquisitions of TOCO and Advantage Healthcare together with continued organic progress further underpin our medium-term growth potential.
"We have confidence in our ability to make further progress in 2013."
Trading performance
Since the IMS on 12 November the company has continued to perform well and to benefit from a strong future workload. Recent noteworthy contract wins include East Thames Group, Carphone Warehouse, London Borough of Southwark, Christie Hospital NHS Foundation Trust, Northumbrian Water, Meraas Developments, General Electric International, Dolphin Energy and the British School Muscat.
Strategic development
In recent months we have realised value of £179.5m from our PFI assets, further improving our financial position and placing us well to take advantage of strategic development opportunities. On 7 January 2013, shareholder approval was obtained for the disposal of PFI assets into the Pension Scheme thereby reducing the Group's actuarial pension deficit to £95m.
In the last twelve months we have invested approximately £70m acquiring two UK frontline services companies (Interserve Working Futures and Advantage Healthcare) and a Middle East oil and gas services business (TOCO).
Outlook
Despite continuing mixed market conditions, we expect to make further progress in 2013. Our medium-term growth strategy remains focused on continued organic progress within our core businesses, further international expansion and seizing growth opportunities in attractive markets.
Forthcoming Board Changes
A number of planned succession changes are outlined below.
David Trapnell will retire from the Board after the AGM on 13 May having served ten years as a Director, including two years as Senior Independent Director (SID). David will be replaced as SID by Les Cullen, who will in turn be succeeded as Chair of the Audit Committee by Anne Fahy.
As announced on 16 May 2012, David Paterson will retire from the Board and the Company on 30 April 2013 whereupon UK Construction, led by Ian Renhard, will report to Dougie Sutherland and International, led by George Franks, will report to Adrian Ringrose. Messrs Renhard and Franks were promoted to the Executive Board with effect from 1 January 2013.
Notification of Change of Broker
With effect from 8 January 2013, Numis Securities Limited will be appointed the Company's joint corporate broker, joining existing broker, J.P. Morgan Cazenove Limited.
- Ends -
For further information please contact:
Robin O'Kelly/Matthew Hickman |
Richard Campbell/Ian Brown |
About Interserve
Interserve's vision is to redefine the future for people and places. We are one of the world's foremost support services and construction companies, operating in the public and private sectors in the UK and internationally. We offer advice, design, construction, equipment and facilities management services for society's infrastructure. Interserve is based in the UK and is listed in the FTSE 250 index. We have gross revenue of £2.3 billion and a workforce of over 50,000 people worldwide.
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