Interserve has bucked the trend among many of its multinational competitors by unveiling a 5.8% rise in half-year revenues at its UK construction division.
The rise to £387.6m for the first six months of this year has helped overall revenues rise by 8.6% to a record £1.07bn, while overall profits have risen by 7.6% to £36.8m.
The international construction division, however, has faced tougher times, witnessing a 7.0% drop in revenues to £96.5m, and the company is pulling out of its troubled Indian venture, which it only launched in 2010, at a cost of £5m.
The company says the UK construction business has been buoyed by a number of contract wins including an £150m contract in Haymarket area of Edinburgh into which the company is also investing £10.5m of equity.
It has also begun to reap the rewards of focusing on energy from waste (EfW) projects, winning a £15m project in Peterborough in the wake of major scheme it won in Glasgow last year which is now underway.
Chief executive Adrian Ringrose said he was also encouraged by strong growth in the company’s equipment services division. He said this is “a leading indicator of future construction demand as market conditions begin to improve”.
On the international side, the company says it remains confident of winning new business in the United Arab Emirates (UAE), and plans to increase headcount in the region by 1,000 from 5,400.
Chairman Lord Blackwell said: “The Group retains a strong financial position driven by cash conversion, low levels of average net debt, a much-reduced pension deficit and backed by substantial banking facilities. We are confident in our capacity to build on our growth momentum in the medium term both through organic expansion – for example and through selective acquisitions.”
The dividend was raised by 6.3% to 6.8p per share.