lFTSE 250 company Interserve has reported strong revenue and profits growth across its support services, equipment services and construction divisions in half-yearly results announced today.
Consolidated operating profits for the period from January to June 2015 were 12 per cent higher than the first six months of 2014, with pre-tax profits climbing 19 per cent to £33.7 million.
Chief Executive Adrian Ringrose said he had a "positive outlook" despite challenging market conditions in the United Kingdom and pointed to an 11 per cent increase in the value of the company's "future workload" to £8.3 billion as evidence of strengthening demand.
Despite an upbeat statement, Ringrose cautioned about the potential short-term impact of the recently announced increase to the UK's Minimum Wage:
"We expect the premium to the National Minimum Wage annoujnced in the recent Budget to have an initial adverse impact on margins in the UK Support Services segmetn of £10-15 million in 2016, receding over the next few years thereafter as the change is priced in to relevant contracts."
