Interserve has revealed it has a £1 billion revenue pipeline for 2013 after winning more than £600m in work to-date this year.
The support services and construction group said trading remains in line with the Board’s expectations in an Interim Management Statement this morning with a £1.9bn pipeline for 2012 secured.
Interserve blamed a bumper 2010 for a 26 per cent drop in UK construction operating profit from £24.5m to £18m in its 2011 results, with revenue down 3.1 per cent to £731.1m. UK operating margin fell from 3.2 to 2.5 per cent, however its overall pre-tax profits rose to £67.1m from £64.1m.
In its IMS, the group stated that it believed 2012 trading will be “stable compared with 2011”. It added that construction, both in the UK and internationally, continues to perform in-line with expectations.
“Demand conditions remain challenging with increased competition although we are engaging in a broader range of sectors and activities which mitigates some of these pressures.”
Interserve has won more than £600m of work in 2012 from clients including the NHS, Ministry of Justice, Alliance Boots, Tata, Gammon-Hyundai, William Hill, Ladbrokes, BPP, Sainsbury’s, National Grid and the West Yorkshire Police Authority.
Chief executive Adrian Ringrose said: “We’ve had a good start to the year and are trading well in mixed market conditions. Our attractive global breadth of end markets in outsourcing and infrastructure, together with our strong financial position, underpins our strategic development potential.”
The group stated: “Having successfully completed our refinancing at the beginning of the year, we have significant available debt facilities which, combined with our good cash management, reinforces our strong financial position.”
Interserve executive director David Paterson will retire from the board in April 2013.