6th Jul 2006 07:00
6th July 2006 INTERSERVE PLC TRADING UPDATE ‚£700 million of major new contracts Interserve Plc, the services, maintenance and building group, today provides anupdate on trading in the first half of 2006 in advance of announcing itsinterim results on 4th September 2006.In the first six months of the year trading conditions have been encouraging.Overall our businesses have performed in line with the expectations set out inour AGM statement, with strong performance particularly in the Middle East andthrough new business wins partly offset by weaker performance in IndustrialServices. During the period, we have been successful in securing a number ofsignificant contract wins worth a total of approximately ‚£700 million.We can announce today that contracts have been signed and that we are nowdelivering services on the MoD's Cyprus Prime Contract and the facilitiesmanagement contract for the London Borough of Croydon, and that our frameworkactivities have been boosted through expansions to, and several new, agreementswith both public and private sector organisations. In aggregate with Cyprus andCroydon these agreements total around ‚£560 million and are with the followingclients: * Barclays - refurbishment of various offices and branches, building on the existing relationship Interserve has with this long-term client. * Welsh Health Estates - "Designed for Life: Building for Wales", the programme created to deliver all major NHS construction projects in Wales. Interserve is one of three Supply Chain Partners in the agreement which will run for an initial four years with a possible two-year extension. * BBC - a framework covering a wide range of building, mechanical and electrical projects across the Corporation's UK property portfolio. We are again one of three suppliers in a four-year agreement. * BT - work concerning both the development of exchanges for BT's 21st Century Network and maintenance in existing properties. In the period we were also named preferred bidder for the Plymouth Schools PFIand reached financial close on the Addiewell Prison PFI, together worth around‚£140 million.Significant activity is under way in anticipation of the acquisition andsubsequent integration of the MacLellan businesses on 20th July. This extensionto our outsourcing activities positions the group to deliver further growththrough access to a broader range of markets across the public and privatesectors and through opportunities for customer development and cross-selling.With encouraging recent new business wins, a positive trading environment inthe UK, continued strength in the Middle East and the expected completion ofthe acquisition of MacLellan, the Board believes that Interserve is well-placedto continue its progress this year and thereafter. - Ends - For further information please contact:Adrian Ringrose, Chief Executive 0118 932 0123Tim Jones, Group Finance Director 0118 932 0123Elizabeth Morley / Tom Siveyer 020 7379 5151MaitlandAbout InterserveInterserve Plc (www.interserveplc.co.uk) is a services, maintenance andbuilding group. It creates buildings and other structures for clients in thepublic and private sectors, maintains many different types of buildings, theoperational systems that support them and a range of plant and equipment inspecialist fields, and co-ordinates a host of background services to keep itsclients' operations running smoothly and efficiently while they concentrate ontheir core business. Interserve is based in the UK, is listed on the LondonStock Exchange and trades in the FTSE 250 index. It employs 12,000 peopleworldwide and has revenue of more than ‚£1.2 billion.ENDINTERSERVE PLCRelated Shares:
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