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Interserve has issued a statement in an effort to settle investor nerves after its stock price nose-dived during Monday and Tuesday trading amid rumours the firm would seek a refinancing.

The company said: 鈥淚nterserve notes recent press commentary surrounding the group and the movement in its share price.

鈥淚nterserve confirms that the implementation of the group鈥檚 strategy and the Fit for Growth transformation programme remains on track and the group continues to expect a significant operating profit improvement in 2018, in line with management鈥檚 expectations.鈥�

The firm鈥檚 comment seemed to calm investors, with its share price bouncing up to 37.5p as of 8.55am Wednesday morning 鈥� 8p higher than its Tuesday low but still 7p short of where the stock finished on Friday.

But the company did not deny a that it was 鈥渟et to ask new investors for more capital鈥�.

The 拢3.2bn-turnover firm has come unstuck on a number problem jobs including the construction of an energy for waste incinerator in Derby and a Premier Inn on Berwick Street (pictured) in central London鈥檚 Soho district.

And Cenkos analyst Kevin Cammack was left unimpressed by the firm鈥檚 statement.

鈥淎s defences go, that one is pretty pathetic. Who gives a monkey鈥檚 about the profits improvement when the group is sat with c拢600m of year end debt, negative net assets ex-goodwill, a market cap of just 拢54m and (very expensive) renegotiated debt facilities which all expire in September 21.鈥�

He added the firm had allowed 鈥渢he market to be gripped by fear (and logic) that a refinancing is coming鈥� and warned: 鈥淭he issues/delays with the Derby EfW 鈥� which have effectively now been confirmed by a statement from its 鈥榩artner鈥� Renewi 鈥� alone are not a breaker but merely serve to remind us of the fragility of the business and the trading risks that are omni-present in the business/ industry.鈥�

Interserve launched its streamlining programme, Fit for Growth, last October after a calamitous year saw the group鈥檚 loss before tax fall from 拢94m in 2016 to 拢244m in 2017.

The group has since undergone an almost 拢300m refinancing, shut its power business and sold off its scaffolding arm.