Interserve posts 31% profits fall

Support services firm Interserve yesterday reported a 31 per cent slide in pre-tax profits to £27.3 million for the first half as several public sector contracts failed to deliver planned profits.

The group said early signs of "a reduction in discretionary work" from public sector bodies had emerged ahead of October's comprehensive spending review. But chief executive Adrian Ringrose was upbeat, saying that in the next two to three years Interserve would benefit from helping the government meet efficiency targets.

Analysts at Panmure Gordon were positive but kept their "sell" recommendation given concerns about spending cuts.