Interserve reports more settled trading

Interserve said trading so far in 2017 has been in line with forecasts, with progress being made on its troublesome exit from the energy-from-waste business.

A statement issued ahead of the company's annual shareholder meeting revealed solid sales for support services, while increasing employment costs will mean that full year profits will be more weighted to the second half than usually.

Good momentum was said to have continued in equipment services across the UK, Middle East and Far East, helped by the changes after last year's strategic review and benefiting from the global pick-up in infrastructure spend.

Trading at UK construction is more "mixed" but in-line with management expectations as they continue to working through some older, low-margin contracts.

"There has, as yet, been little noticeable slowdown in our volume of work from UK government, although workflow may be impacted by the general election," the company said.

Expectations for the overall performance and cash delivery are unchanged, with interim results scheduled for 9 August.