Interserve recovery is on track

The outsourcer said its recovery plan was on track despite slipping to a £6 million pre-tax loss from a £24.9m profit a year before with sales down from £1.64 billion to £1.48bn for the six months to the end of June

Operating profit improved £11.5m to £40.1m from the second half of 2017.

The Fit for Growth programme is on target to deliver £15m savings in 2018 with £8m secured in the first half,

Interserve said its completed refinancing is providing financial stability for the group and new facilities are in place through to 2021 to enable delivery of the group's business plan

The group has a future workload of £7.4bn with significant recent contract wins.

Chief executive Debbie White said: "The first half of 2018 was an important period for Interserve as the new management team took actions to bring stability to the business and agree the direction of the group's future strategy.

"The 'Fit for Growth' initiatives we are implementing are delivering material cost savings and will result in a simpler, more focused and more effective Interserve. The refinancing that we completed in April provides a firmer financial footing from which to execute these plans.

"Today we have a strategy that provides a clear direction, leveraging our areas of strength, where Interserve can provide compelling customer propositions, delivered with rigorous operational and financial discipline. Whilst there remains a significant amount of work to do, we have energy and momentum in the business as evidenced by the significant new contracts wins secured in the first half of the year."

Interserve, which has a worldwide workforce of around 75,000, has around 2,000 employees in the West Midlands.

It has its regional office at Birmingham and employs hundreds at nursing agency Interserve Healthcare, Telford, and in cleaning and maintenance at Russells Hall Hospital, Dudley.

It also owns construction firm RMD Kwikform in Aldridge and has offices in West Bromwich.