Interserve has reported its net debt has almost doubled as the troubled firm released its annual results for the year ended 31 December 2017.

The financially-stricken company revealed despite revenue remaining steady at £3.2bn, operating profit fell from £155m in 2016 to £74.9m in 2017, while pre-tax losses widened from £91.1m to £244m. Net debt has also jumped from £274.4m to £502.6m.

Interserve revealed operating profit was adversely impacted by poor performance in Support Services and Construction divisions, despite continued good growth in Equipment Services.

Elsewhere, the increase in net debt was driven by Energy from Waste cash outflows, non-underlying charges, a more normalised working capital position and foreign exchange movements.


However, the company has a future workload of £7.6 billion and Chief Executive Debbie White said despite 2017 being a "difficult year", it was also a year of "significant progress".

"As a new management team, we have stabilised the business and taken the first actions to establish a solid foundation from which we can both serve our customers effectively and underpin improved future operational and financial performance," she said.

"This work has focused on refinancing, conducting a thorough assessment of the contract portfolio, and introducing new management disciplines, processes and cost controls under the 'Fit for Growth' programme.

"We are confident that the cost savings and management actions identified will contribute at least £40-50 million to Group operating profit by 2020, with the 2018 benefit estimated to be £15 million. The refinancing we recently agreed with our lenders is a major step in securing a firm financial platform to underpin the Group's future.

"Of course there is much still to do. However, we are encouraged by the support from our lenders and the new facilities will allow us to execute our business plan, focus on delivering a good service for customers, drive improved operational and financial performance."

(LM/MH)