Interserve (IRV) improved across a range of metrics through 2015, with strong profitability from its support services, international construction and equipment services businesses. UK construction was the only laggard within the group structure. Top-line growth in tandem with an increase in marginal profitability resulted in a 28 per cent increase in full-year gross profits to £423m. The market is, however, likely to remain circumspect given that underlying growth this year could be constrained by the impact of the National Living Wage.
Analysis from Liberum in February cast doubt on the sustainability of Interserve's revenue streams from its Middle East operations. Chief executive Adrian Ringrose insists that the group's exposure is justified by long-term infrastructure expansion in the region. Having secured contracts with BP Khazzan (Oman), Shell GTL (Qatar) and the Dubai Aviation City Corporation (UAE), Mr Ringrose might have grounds for his confidence.