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Interserve to pull out of energy projects

Viridor Glasgow

Support services and construction company Interserve is quitting the energy-from-waste (EfW) sector after problems with contracts forced it into a £34m half-year loss.

Interserve currently has six projects, with a combined revenue of £430m, which were entered into between 2012 and 2015 and are expected to be completed next year.

They include Viridor’s £155m Glasgow Recycling and Renewable Energy Centre (pictured).

It expects the cash impact to be “substantially borne this year”.

In its half-year results, Interserve said: “Managing the challenges of exiting from these complex projects is a significant priority, as is ensuring our processes continue to improve given the lessons we have learned.”

Chief executive Adrian Ringrose said: “We are taking action to exit the EfW sector. Our assessment of the aggregate impact of exiting this sector is in line with the £70m exceptional charge we announced in May.

“Despite the increased political and macro-economic uncertainty following the UK’s EU referendum, our outlook for the current year remains unchanged. This, together with our significantly improved cash flow and healthy future workload, underpins the board’s confidence in our prospects and a further increase in the interim dividend.”

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