Contractor abandons disposal after strategic review
Interserve has decided to keep hold of its equipment services business RMD Kwikform following a strategic review.
The contractor said it will instead be spending 拢17m on the falsework and formwork business as part of its new strategy which includes investing in ground shoring to make it a leading player in the market and restructuring operations in smaller, less attractive markets.
Interserve, which is headed by chief executive Adrian Ringrose (pictured), plans to spend 拢5m of the 拢17m allocated over the next year, but expects the restructure to reduce capital expenditure by 拢5m over the next two years from it.
RMD Kwikform contributed 32% of Interserve鈥檚 total operating profit in 2015 and the company said it as a global business it provided an 鈥渋mportant element of diversification鈥� to Interserve鈥檚 mainly UK-based earnings.
鈥淲hilst some of our end markets face some near term uncertainty, the structural drivers for global infrastructure remain strong,鈥� Interserve added.
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