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Interserve wins £67m government FM contract

Interserve has won a £67m contract to continue providing facilities management services for the Foreign and Commonwealth Office (FCO).

The five-year deal is an extension to the 10-year contract the company has held with the department.

The FCO will also now have the opportunity to extend the deal for a further two years.

Interserve will carry out FM at the FCO’s London headquarters as well as embassies and other offices throughout Europe.

Work covered by the contract includes engineering, ground maintenance, cleaning, catering and helpdesk services.

The public sector contract extension follows Interserve’s £35m FM deal with Barking, Havering & Redbridge University Hospitals NHS Trust signed last month.

The company also recently secured spots on the Crown Commercial Services £12bn four-year FM framework.

In June it emerged that Interserve had been given a ‘red’ rating as a government strategic supplier.

Chief executive Debbie White revealed the rating – which means the government has “significant material concerns” about the company – to MPs at a select committee hearing.

Ms White is continuing efforts to reduce costs at Interserve after it reported a £244m pre-tax loss for 2017.

Next week the company will release details of its financial performance for the first half of 2018.

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