Interserve, like Carillion are a well-established UK facilities company. They recently came under fire in the wake of the Carillion downfall, as it was reported that they too were heading in the same direction. However, after being questioned on the truth to these reports, the Cabinet Office have come out in defence of Interserve.
A spokesperson from the Cabinet Office explained how ” “We monitor the financial health of all our strategic suppliers, including Interserve. We are in regular discussions with all these companies regarding their financial position. “We do not believe that any of our strategic suppliers are in a comparable position to Carillion.”.
Interserve are one of the governments major suppliers across multiple sectors, however many people were concerned when they announced warnings regarding their profits in September and October 2017. They had seen some shortfalls regarding contracts in waste to energy, and had projected net debts of £512bn by the end of the year.
An ETX senior market analyst was quick to dismiss the comparisons being drawn between the two companies, saying Interserve has had its problems but is “no Carillion”.
Adding: “Comparisons with Carillon are all too easy to make of course – a diverse business operating on thin margins. It has faced pressure from employment and contract mobilisation costs and margin deterioration from a cost base which has not been flexible enough. It’s one of the most heavily shorted FTSE stocks and it has a lot of debt.
“However, in the case of Interserve, the arithmetic doesn’t look anything like as bad as Carillion.”