18th May 2011 07:00
18 May 2011 Interserve INTERIM MANAGEMENT STATEMENT Good start to the year
Interserve, the international support services and construction group, is issuing its Interim Management Statement covering the period from 1 January 2011 to date, in advance of its Annual General Meeting which will be held at 11:00 a.m. today.
Highlights
* Trading during the period in line with expectations
* Contract wins totalling over £400 million
* Excellent revenue visibility: c. £1.8 billion(1) for 2011, c. £1.0 billion(1)
for 2012
* Strong cash generation, further progress on net debt with current position
below year-end 2010
Chief Executive Adrian Ringrose commented,
"We've had a good start to the year and reiterate our expectation of stable trading in 2011. We continue to believe that we have the capability to double earnings per share over five years, given our proven strategy, our attractive global mix of end markets in outsourcing and infrastructure and our strong financial position."
Trading Performance
The Group is performing in line with the Board's expectations and we maintain our outlook that trading in 2011 will be stable compared with 2010 and will show similar seasonality.
* Support Services is making further progress and we continue to expect that
it will deliver strong profit growth in 2011 and maintain a healthy
workload.
* Projects Services International is performing in line with expectations and
its workload remains stable compared with the 2010 year end.
* Project Services UK is performing to plan and has increased its future
workload since the year end.
* Equipment Services is making further progress in Australasia and the
integration of our acquisition in the USA is proceeding well. Despite
political unrest in Bahrain and North Africa and continued challenging
conditions in a number of our other markets we continue to expect the
division to resume growth in 2011.
Contract Wins and Future Workload
In recent months we have won a number of contracts in the UK and across the Middle East with a combined value of over £400 million, including:
* Department for Work and Pensions' Work Programme in joint venture, worth
£130 million over five years;
* Defence Infrastructure Organisation: £108 million two-year extension of the
South East Regional Prime contract;
* Nottingham University Hospitals NHS Trust: preferred Principal Supply Chain
Partner for the next five-year ProCure21+ framework;
* Industrial services contracts with BAE Systems, CE Electric, Keppel Seghers
and Syngenta worth £50 million in aggregate;
* Leeds City Council: preferred bidder for the construction of the Holt Park
wellbeing centre and related facilities management thereafter, worth around
£24 million;
* Majid Al Futtaim: construction of a shopping mall in Fujairah, UAE, worth
AED250 million;
* Industrial services and fit-out contracts in Qatar with the Commercial Bank
of Qatar, Dolphin Energy, KEO, Maersk and Qatar Shell Gas-To-Liquids, worth
an aggregate QAR120 million.
The above awards have contributed towards a modest increase in the Group's future workload compared with the 2010 year-end position of £5.3 billion(1), affording excellent revenue visibility of around £1.8 billion(1) for 2011 and around £1.0 billion(1) for 2012.
Financial position
Continuing control of capital expenditure and working capital across all operating divisions has led to an improvement in the net debt position compared with that reported as at 31 December 2010 (£53.8 million), and the Group retains a strong financial position.
Outlook
We reiterate our expectation of stable trading in 2011. We continue to believe that we have the capability to double earnings per share over five years, given our proven strategy, our attractive global mix of end markets and our strong financial position.
Our medium-term growth strategy remains focused on our core markets of outsourcing and infrastructure.
* We continue to enjoy success in the outsourcing market, as evidenced by the
extension of our long-standing relationship with the Defence Infrastructure
Organisation. Our ability to capture emerging opportunities was
demonstrated by our appointment to the Department for Work and Pensions'
Work Programme, and we look forward to taking advantage of further
opportunities as they arise.
* In infrastructure we expect renewed growth in international markets such as
Qatar, our largest overseas market, and India, a market we recently entered
and which offers significant opportunities to expand both our service
offering and geographical footprint.
An electronic copy of this Interim Management Statement will be available to download from the Company's website, www.interserve.com.
(1) Including our share of associates
For further information please contact:
Adrian Ringrose, Chief Executive 0118 932 0123 Tim Haywood, Group Finance Director 0118 932 0123 Matt Jones, Head of Investor Relations 0118 960 2280 Elizabeth Morley / Tom Eckersley, Maitland 020 7379 5151
About Interserve
Interserve's vision is to be the Trusted Partner of all our stakeholders. 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. We are based in the UK, have revenue of £1.9 billion and a workforce of 50,000 people worldwide.
vendorRelated Shares:
Interserve