Interserve profit soars as it wins £200m Contracts

11 March 2009

Interserve announced that headline total operating profit for 2008 was £88.0 million, a 20.0 per cent increase on 2007. Revenue was up by 3.6 per cent to £1,800 million. Interserve also announced that it has won contracts in the UK and through its Middle East associates worth over £200 million. :

These include two facilities management contracts, for Ealing Council and
Leeds Partnership NHS Foundation Trust, and two construction projects in Dubai:
The Middle East projects are for an extensionion to the Mall of the Emirates;
and a multi-purpose hall for the Government Engineer's Office.

In Ealing, Interserve has been named preferred bidder to deliver a total
facilities management contract for 10 years. The contract on behalf Leeds
Partnerships NHS Foundation Trust is through Equitix which, in a Private
Finance Initiative (PFI) project, owns and operates seven sites in Leeds
providing a range of mental health services. Interserve, which has been
working with the Trust in other contracts since 1998, will employ an
additional 150 staff to supply and manage a number of services worth
in excess £50 million over a 19-year period.

The Middle East construction projects have been awarded to Khansaheb Civil
Engineering, in which Interserve has a 45 per cent stake. Khansaheb originally
built the Mall of the Emirates, held to be the third-largest shopping mall in
the world when it opened in 2005. Majid Al Futtaim, the owner, has now engaged
the company to undertake a £50 million project comprising a four-storey
extension, additional parking facilities and a link to the Dubai Metro public
transport system.

Meanwhile the multi-purpose hall being constructed for the Government
Engineer's Office will feature an enormous clear span 120 metres square. This
will be capable of being divided into four individual event areas using sliding
and folding partition walls which will also form access corridors to service
smaller events. Together with associated car parks, roads, loading bays,
external works and landscaping the project has a value of approximately £50
million.

Adrian Ringrose, Interserve's Chief Executive, said, 'These wins demonstrate
that there are good opportunities in our markets, both in the UK and the Middle
East. The sectors we are focused on are resilient and we are reaping the
benefits of our strategy of developing long-term client relationships.'