Interserve has posted a pre-tax profit of 拢89.2m in its full-year results for 2009, an increase of 拢9.3m on the 2008 figure.
However, this was chiefly due to exceptional items which added 拢16.3m to its balance sheet. Otherwise, its profit before tax would have been down by 拢3.1m on the previous year.
Turnover increased by 5.9% to 拢1.9bn (2008: 拢1.8bn).
Interserve said it had already secured 80% of 2010 revenue, and 58% of anticipated 2011 revenue. It boosted its order book by 拢2bn in 2009, and has been awarded contracts in 2010 to date totalling 拢500m.
The firm reduced its net debt by 65% from 拢109.2m to 拢37.3m.
Its pension shortfall has fallen by 37% to 拢68.6m
Interserve gained 拢16.3m in exceptional items, after contributing 拢33.2m in PFI assets to its pension scheme, and receiving a 拢20.6m pension curtailment gain. However, this was partly offset by its Office of Fair Trading fine (拢11.6m), and impairment of goodwill.
Operations review
In the UK, Interserve believes prospects for increased outsourcing, and demand for social infrastructure should provide opportunities. However, it is taking 鈥渃oncerted action to reduce our cost base in a number of our newer public sector facilities management contracts where trading has been weaker than anticipated鈥�.
In the Middle East, Interserve said its businesses have continued to trade well, benefiting from a good geographic spread of work, and solid local partnerships. It believes 鈥渕edium-term growth drivers for the region as a whole remain attractive, notwithstanding a quieter Dubai construction market鈥�.
The UK now contributes approximately 40% of Interserve鈥檚 profits with the international businesses contributing 60%.
Chief executive Adrian Ringrose said: "Interserve made good progress during difficult conditions in 2009. While the Group is not immune to the current economic challenges, it benefits from a solid and balanced UK position, continued opportunities internationally, good revenue visibility and a strong balance sheet.
鈥淕iven the risks in the external environment, 2010 will be a challenging year, particularly in the first half.鈥�
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