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Thu December 13 2018

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Interserve brushes off speculation

13 Nov Interserve has dismissed press speculation about its financial health and insists that its recovery is all going according to plan.

Interserve has been under the microscope since the collapse of Carillion at the start of the year as the two companies share significant features. Its share price fell 50% after Carillion filed for liquidation, from around 120 pence a share to 55 pence.

The share price subsequently improved somewhat, averaging around 70 pence over the summer. But speculation intensified more recently following the disclosure from one if its clients, Renewi, on 8th November, that Interserve had missed the project long stop date on a waste to energy plant that it is building in Derby.

That prompted Interserve’s share price to fall from 47 pence to 40 pence and then down to 30 pence when The Guardian newspaper picked up on it on 13th November.

That in turn prompted Interserve to issue a statement later in the day insisting that there was nothing to worry about.

“Interserve notes recent press commentary surrounding the group and the movement in its share price,” it said. “Interserve confirms that the implementation of the group's strategy and the Fit for Growth transformation programme remains on track and the group continues to expect a significant operating profit improvement in 2018, in line with management's expectations.”

The share price rallied on the back of this statement, climbing towards 38 pence by mid afternoon.


 

MPU

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