Interserve has posted a £94m loss after exiting the energy-from-waste sector.
The contractor reported a pretax loss of £94.1m for the year to 31 December 2016, compared with a pretax profit of £79.5m a year earlier.
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Overall revenue rose slightly to £3.24bn, up from £3.20bn in its previous results.
For the group’s UK construction arm, revenue was up by 9% to £971.4m, from £894.9m a year earlier. However, it posted a £3.1m operating loss, compared with a £10.7m operating profit last year.
The group’s UK construction order book was also £200m lower than a year earlier at £1.2bn, down from £1.4bn.
Interserve said the drop in its order book was largely down to a more selective bidding process, with the firm now focusing on “low-risk” projects with an average value of less than £10m, alongside more jobs won under framework agreements.
In support services, the UK business’s revenue dropped by 3% to £1.78bn, down from £1.83bn a year earlier, while operating profit was down 13% to £87m from £100.4m. Support services’ order book was up £100m to reach £5.7bn.
Chief executive Adrian Ringrose said that 2016 was a mixed year for the group. “We delivered a strong cash performance and the majority of our businesses performed well despite political and economic uncertainties, together with the impact of the National Living Wage in the UK.
“However, the performance of our UK construction business was disappointing, and we are focusing our efforts on improving and reshaping this business.”
The firm added that the search and selection process for Ringrose’s successor was “nearing its conclusion” with a further announcement expected in the near future.
