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Sat August 03 2024

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Interserve plans for further 'reduction in construction activity'

10 Jan 12 Interserve is aiming to secure more public sector outsourcing contracts to offset an expected fall in the construction sector.

In a trading update ahead of its annual results, which will be published next month, the firm announced it has added £400m-worth of new work to its order book.

It was helped by a “resilient” performance from its construction business which was still being “impacted by margin pressures and increased competition in the current economic environment”.

Elsewhere, the best news came from its international businesses, with strong performances in Australasia, the Pacific Rim and Saudi Arabia.

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New contracts won include:

  • West Yorkshire Police. Construction (in consortium) of two new divisional headquarters, custody suites and operational training facility, and the provision of FM services for 25 years.
  • NHS Wales. Places on all three regional construction framework agreements in the Designed for Life: Building for Wales 2 programme, which lasts for four years plus a possible two-year extension.
  • Leeds City Council. Construction of the Holt Park wellbeing centre, including provision of FM services for 25 years.
  • Daewoo, Oman. Infrastructure for a new 2,000MW power station in Sur for the Oman Power and Water Procurement Company.
  • Qatar Shell GTL. A place on a three-year construction services framework agreement, with a two-year extension option.
  • Department for Education, Department for Communities and Local Government, Ofqual and Queen Elizabeth II Conference Centre. Five-year facilities management contract, with a possible two-year extension.
  • Ministry of Justice. New framework for the provision of custodial services across the prison estate.

Chief executive Adrian Ringrose said: "We anticipate that increasing pressure on UK public sector spending will provide us with further outsourcing opportunities, helping to offset a reduction in construction activity.

“Internationally we are well positioned both to grow our existing businesses and to expand the range of our offerings in some of the world's fastest-growing economies."

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