Contractors focus on support services
Support services also saw a decline, from £22m last year to just £4m this year – however the firm said the fall was largely caused by a “skewing of profits to the second half due to mobilisation costs on recent contracts”.
Interserve, too, saw a marked decline in its construction operations, as the construction market continues to struggle in the UK. Its construction business suffered a 27% slump in its total operating profit in the UK, whereas its support services arm enjoyed a 23% increase.
The firm’s overall profit before tax – which increased by 8% to £32.6m – was boosted by the disposal of PFI assets to realise a cash value of £35m.
“We have delivered a good set of results against a backdrop of continuing mixed market conditions,” said Interserve chief executive Adrian Ringrose.