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Wednesday, 8 August 2018

Knowle relocation project: how vulnerable is Honiton HQ builder?

The builder of the new District Council HQ in Honiton has been having a spot of bother:
Futures Forum: Knowle relocation project: problems for Honiton HQ builder > Could Interserve become another Carillion?
Futures Forum: Knowle relocation project: and further problems for Honiton HQ builder

It's not getting any better apparently: 

BETTER HOPE THAT NEW EDDC HQ IS NEARLY FINISHED …

8 AUG 2018

… as its chosen builder (Interserve) is going through a very rough patch:
https://www.constructionenquirer.com/2018/08/07/more-losses-at-interserve-as-debt-levels-top-600m/



Better hope that yew tree spell does the trick:

https://www.devonlive.com/news/devon-news/yew-tree-ward-evil-spirits-1687885

Check that roof … and the walls … and the wiring … and the plumbing … we wouldn’t want it costing more than the “old” HQ to put right would we …!



Better hope that new EDDC HQ is nearly finished … | East Devon Watch

The construction news is dominated by the latest from Interserve:
Pre-tax loss for Interserve | Article | KHL
Interserve half-year loss: 5 things we learned | News | Construction News
More losses at Interserve as debt levels top £600m | Construction Enquirer
Recent Investment Analysts’ Ratings Changes for Interserve (IRV) - Fairfield Current

And the mainstream press is interested too: 
Interserve slips to a loss as restructuring costs take a toll - Telegraph
Interserve's share price falls as construction giant swings to a loss | City A.M. 

Outsourcer Interserve suffers tough start to year

Camilla Hodgson YESTERDAY

UK government contractor Interserve suffered a plunge in profits in the first half of this year but said its restructuring was on track, months after it agreed a survival deal with creditors. Shares fell 10 per cent in early trade on Tuesday.

The outsourcer, which provides support services in areas including probation and healthcare, reported a loss before tax of £6m, compared to a £24.9m profit in the same period last year, while headline profit before tax — adjusted to include the impact of the group’s exit from several of its smaller businesses — dived 81 per cent to £9m. Revenue also fell 10 per cent to £1.5bn.


Interserve is one of a number of government outsourcers to have come under scrutiny in the wake of the collapse of former rival Carillion in January. Later that same month, the Cabinet Office set up a team to monitor Interserve, and on Tuesday Interserve said it was “working closely” with the team “in evolving the way the sector engages with the UK government.” Since then, shares in Interserve have hovered around lows not seen since the 1980s.

In the opening six months of this year, Interserve exited its property development business and continued winding down its Energy from Waste business, which it said would allow it to focus better on its “core activities” in support services. However, the group’s announcements to the market, between July 2016 and February 2017, that it was planning to stop building plants that generate energy from waste is currently being investigated by the Financial Conduct Authority.

Meanwhile, Interserve’s construction business in the UK made a return to operating profit as it “continued to strengthen our pricing and bidding controls,” but its equipment services saw lower revenue and profit, largely as a result of the trade blockade in Qatar and fewer infrastructure projects in the UK.


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