9 Jul 2008

Interserve Plc, the services, maintenance and building group, today provides an update on trading in the six months ended 30 June 2008 in advance of announcing its half-year results on 13 August 2008.

Trading
Overall trading in the first six months of the year has been strong, showing healthy growth over the same period last year in line with expectations.

Project Services’ operations in the Middle East have performed particularly well as our established position and high quality relationships have enabled us to win and deliver further projects across a broad range of commercial, social and industrial infrastructure. The indications are that this market will remain strong for the foreseeable future.

In the UK, Project and Facilities Services businesses have also grown, despite some signs of uncertainty in a small number of market sectors, benefitting from their focus on prioritised, long-term, public services and infrastructure.

Equipment Services has traded strongly, reflecting further growth in the Middle East and stronger market conditions in Australasia.

PFI/PPP Investments
We made further advances in the development of our PFI portfolio, reaching financial close on two contracts during the half year. With the four-year construction programme in a further major contract, the Armada Fleet Accommodation Centre at Devonport, completing on schedule, we now have 21 fully operational contracts and investment commitment in a total of 26.

 
Outlook
The Board remains confident that the Group’s exposure to buoyant international markets, together with our strong and growing position in UK social infrastructure and outsourcing, will underpin continued progress.