15th Nov 2016 13:09
LONDON (Alliance News) - Interserve PLC on Tuesday said it has been served notice of termination on its Glasgow Recycling & Renewable Energy project, which is one of a number of contracts within its recently-exited energy-from-waste business.
Interserve said it was currently assessing the implications of this development with its legal advisers.
In August, the group said it had decided to exit the energy-from-waste market, due to a deterioration in the outlook from contracts, which it had first reported in May and which meant it booked a GBP70.0 million contract provision in respect of the Glasgow energy-from-waste project.
Interserve was awarded the contract to build the Glasgow waste treatment and gasification facility in July 2012 by renewable energy and waste management company Viridor, part of FTSE 250 water utility Pennon Group PLC.
Interserve said at the time that the contract was worth GBP146.0 million, with work expected to start on the site in 2013 and to complete in 2016.
Shares in Interserve were down 7.7% at 341.81 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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