EDDC HQ builder in trouble

Owl says: better get that building up and snagged quickly!

“Interserve shares fall as growing debt sparks fears over its finances.

Shares in Interserve fell 7% on Friday morning after the government contractor said debts this year would be higher than previously expected, reigniting investor jitters about the financial health of the firm.

The company, which carries out building work and provides services such as cleaning, said debts would be between £625m and £650m by the end of the year, having earlier said debts would be £575m to £600m.

It comes a week after Interserve was forced to comment on the state of its finances, after shares tumbled to a 30-year low over fears it was heading the same way as Carillion, the rival outsourcing firm that collapsed in January.

The drop was prompted by an update from waste-to-product manufacturer Renewi, which said Interserve had missed a deadline on a joint venture in Derby that aims to produce energy from waste. The update prompted speculation that Interserve may be forced to set aside more cash to compensate for delays.”

https://www.theguardian.com/business/2018/nov/23/interserve-shares-dive-as-growing-debt-sparks-fears-over-its-finances

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