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Interserve turnover up 5.9pc after £2bn of contract wins

Turnover at Interserve was up 5.9 per cent to £1.9 billion for the year ended 31 December 2009 after winning more than £2 billion of contracts in 2009.

Interserve’s turnover totalled £1.9 billion, up from £1.8 billion while pre-tax profit rose 11.6 per cent to £89.2 million from £79.9 million.

Interserve won work with a whole-life value of more than £2 billion in 2009 with a further £500 million won in 2010 to date, including £200 million revealed today in a separate announcement.

Net debt fell 65.8 per cent to £37.3 million from £109.2 million.

The contractor has secured 80 per cent of its anticipated 2010 turnover and 58 per cent of 2011’s turnover.

As part of the results statement Interserve announced the conclusion of its triennial valuation negotiation with the Interserve Pension Scheme trustee.

The funding shortfall of £224 million as at 31 December 2008 will be recovered over the period to 2017.

Significant steps to reduce this shortfall have already been taken by making further contributions, totalling £75.1 million, which will result in cash contributions from 2010 of approximately £22 million per annum, an increase of approximately £10 million per annum as compared to the previous funding plan.

The agreement concludes a year in which a number of actions have been completed to significantly improve the pension scheme funding position whilst reducing anticipated future growth and volatility in net liabilities.

Interserve chief executive Adrian Ringrose said: “Interserve made good progress during difficult conditions in 2009.

“Whilst the group is not immune to the current economic challenges, it benefits from a solid and balanced UK position, continued opportunities internationally, good revenue visibility and a strong balance sheet.

“Given the risks in the external environment, 2010 will be a challenging year, particularly in the first half. However, we are focused on taking advantage of the opportunities for renewed growth, as and when our markets recover.

“Our confidence in the group’s future prospects is reflected in the board’s recommendation of the continuation of our progressive dividend