Half Year Results 

Interserve has a debt problem

Interserve has a debt problem

Investors sent Interserve’s (IRV) share price down in the days following the release of its half-year results, after the group increased its forecast for average 2017 net debt to £475m-£500m, from the £450m previously expected. This is due to changes to timing assumptions for insurance receipts in the troubled energy-from-waste business, combined with the working capital demands of public sector outsourcing contracts. The figure is expected to come down to between £400m and £425m at the year-end. Future workload for the support services provider (excluding the troubled and now exited business) fell to £7.1bn at the end of June, from £7.6bn at the full-year results, after the company became more selective about the UK construction contracts it takes on.

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