Interserve's full year profit up 28%

FTSE 250 support services and construction group Interserve reported a jump in profit and revenue for the year ended 31 December and lifted its dividend, although it forecast a flat 2016.

Pre-tax profit rose 28% to £79.5m, as revenue grew 10% to £3.2bn. Meanwhile, operating profit came in at £131.8m from £117.2m and the company lifted its full year dividend from 23p per share to 24.3p.

Interserve said highlights from the period included key contract wins with both new and existing clients including London Underground, B&Q, Superdrug, BS Stanford, BP Khazzan (Oman), Shell GTL (Qatar) and the Dubai Aviation City Corporation (UAE).

In addition, the company said it was planning a strategic review of its Equipment Services unit.

Chief executive Adrian Ringrose said: "Over the last five years we have made substantial strategic progress creating a broader, stronger business. Our performance in 2015 was good, resulting in 12% operating profit growth in markets that continue to offer both opportunities and challenges.”

Interserve expects this year to be broadly flat compared to the last as underlying growth is restrained by the impact of a slower order intake following an election year and the impact of the National Living Wage.

However, the group expressed confidence that it would return to growth in 2017, underpinned by its “strong positions in attractive markets”.