Privatised services group Interserve to be monitored by government

“The government has brought in Deloitte to help it to monitor Interserve, a troubled rival to the collapsed construction and outsourcing group Carillion.

The accountancy firm was hired by the Cabinet Office to advise on the sustainability or otherwise of the broad range of public sector contracts held by Interserve, Sky News reported.

EY is already advising Interserve and its lenders.

Concerns about the future of Interserve have grown since it was forced to take a £195 million hit on delivering energy-from-waste incinerator projects, which started going wrong in 2016.

Like Carillion, Interserve is a construction company and public services contractor. With projected debts of £430 million, it has been in talks with its banks since the end of last year, when it broke its lending covenants.

Interserve generated revenues of £3.5 billion last year. It has 80,000 employees, including 25,000 in the UK. It is a provider of probation and rehabilitation services in England and Wales, maintains the Ministry of Defence’s training base on Salisbury Plain, the Cookham Wood youth offenders institution and provides flood defences from Truro to Harwich.

Interserve, whose financial results are due in March, declined to comment.”

Source: The Times (pay wall)