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Loss-making energy projects hit Interserve results

Interserve has revealed that three loss-making energy projects are set to drag down results for its construction division this year.

In a trading update to the City, the firm said subcontractor insolvencies and the subsequent impact on timescales and cost were to blame for the losses on the three projects.

Contacted by Construction News, Interserve said it was unable to confirm the identity of the projects.

In its update, Interserve said its involvement in the projects was “substantially complete”.

Its fit-out and building businesses have shown “encouraging” performance, the company said, but the three loss-making jobs will mean the construction division is expected to only break even in its full-year results.

Both the firm’s support services and equipment services arms have performed strongly, with growth in the Middle East and the UK offsetting a “cyclical downturn” in Australia.

Interserve’s full-year results are due for publication on 24 February 2016.

The company has also announced that former PwC vice chairman Glyn Barker is set to become chairman on 1 March 2016.

Mr Barker, who is currently a non-executive director of Aviva and of Berkeley Group, will join the board on 1 January 2016, replacing outgoing chairman Lord Blackwell.

Mr Barker also serves as the chairman of Irwin Mitchell and of Transocean Partners.

Commenting on the appointment, Interserve chief executive Adrian Ringrose (pictured) said: “I am delighted that Glyn has agreed to join the board.

“His experience in leading complex organisations and boards and of working closely with stakeholders will be a powerful asset for the company as it continues to grow.

“I look forward to his contribution and guidance as we seek to achieve the company’s long-term strategic and business objectives.”

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