Interserve has revealed its unaudited financial and operational results for 2018, as it reveals pre-tax losses of £111.3m
Financial updates posted today (27 February) by the contractor unveil an improvement on 2017 when losses stood at £244.4m.
Revenues declined 10.7% to £2.9bn (2017: £3.25bn) due to a fall in UK construction and a more commercially focused group-wide bidding process.
Net debt increased to £631.2m from £502.6m in 2017 driven by problem contracts in the UK and the Middle East and outstanding costs on a number of construction projects.
Interserve also revealed further details of its proposed deleveraging deal with financiers which will be voted on by shareholders on 15 March 2019.
It stated the directors believe the proposed deleveraging plan would provide the group with sufficient liquidity to service its short-term cash obligations, create a strong and competitive balance sheet and a fundamentally solid foundation.
Debbie White, Chief Executive Officer, Interserve plc said: “Despite extremely challenging circumstances, Interserve has made significant progress in 2018. Following the successful completion of the refinancing in April 2018, the business has traded robustly in some difficult markets and continued to win significant new contracts.
“Interserve remains focused on positioning the group for long-term, sustainable success. This means continuing the operational progress we are making to put legacy issues behind us.
“However, the group remains over-leveraged and the successful implementation of the deleveraging plan is critical to our future, as it will ensure that Interserve has a competitive financial structure for its future growth. I would urge our shareholders to vote in favour of the deleveraging plan.”