黑洞社区

Interserve鈥檚 construction arm has reported an 18% fall in profit as its margins were squeezed to 2% last year.

Reporting its full results for the year to 31 December 2012, the firm said its construction arm reported revenue of 拢939m, down from 拢955m the year before.

This was driven by a fall in international revenue from 拢224m to 拢202m, although UK revenue rose slightly from 拢731m to 拢737m.

The firm鈥檚 construction arm reported an operating margin of 2% in the UK, down from 2.5% the previous year, delivering an operating profit of 拢14.6m - down from 拢18m in 2011.

Operating profit in its international construction business also fell, down from 拢16.6m the previous year to 拢14.3m, with its operating margin falling from 8.4% to 6.5%.

The Interserve group reported a rise in revenue of 6% to 拢2bn in 2012 from 拢1.8bn in 2011.

Interserve reported a pre-tax profit of 拢183m in the year to 31 December 2012, up from 拢67m in 2011. But this was bolstered by the sale of 拢174m of interests in PFI contracts.

Speaking to 黑洞社区, Adrian Ringrose, Interserve chief executive, said the sale of it PFI contracts and undrawn banking facilities of around 拢200m put it in a good position to target acquisitions for expansion.

He said that most of this would be directed at improving the firm鈥檚 public services business but added: 鈥淲e will grow the construction business organically but where we might want acquisitions is in the oil and gas market.鈥�

Ringrose said the firm saw the energy from waste market, where it has completed projects in Westbury and Wiltshire and recently been appointed to build a 拢150m facility in Glasgow, as a growth area for the business.

Though he added he expected the construction market to remain flat this year and 2013 was about the construction arm 鈥渉olding its shape鈥�. 鈥淚t has been about that for a while,鈥� he added.