Interserve鈥檚 share price was at 352 pence in February shortly before it revealed that problems in the energy from waste sector would cost it 拢160m rather than then 拢70m it had previously provided for. This caused the share price to tumble to around the 220 pence mark. Over the summer months the price began to slide below 160 pence.
The came that the cost of the waste-to-energy problems 鈥渨ill significantly exceed the 拢160m currently provided鈥�.
By close of trading (14th September 2017) Interserve鈥檚 share price was down at 72 pence.
It is likely that radical surgery will be demanded from new chief executive Debbie White, which given her background in the support services sector could mean a further reduction in exposure to construction. Last month, just before her arrival, the board said that Interserve would no longer take on UK construction contracts of more than 拢10m in value. []
But the support services sector is also having a tough time of it, with competitors Carillion, Mitie and Capita all struggling. Her options may be limited.
It is only two years ago that Interserve shares were trading at more than 拢6 each.
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