Interserve maintains guidance after MoD award – MoneyWeek

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Indeed,thecompanyannouncedanothercontractwinalongsideitsresults,withtheUKMinistryofDefenceawardingthegroupnewfive-yearcontracts,worthapotential£420m,inCyprus,theFalklandIslands,AscensionIslandandGibraltar。

InterservecurrentlyholdsthecontractsforCyprus,theFalklandsIslandsandtheAscensionIsland,sotheGibraltarcontractrepresentsanewwinforthegroup。

Theworkwillrununtilatleast2017intheislandsanduntil2018inGibraltar,followingtheexpiryofthecurrentcontractsin2012and2013respectively。

Thecontractawardaddedwaittothegroupsclaimthatthebreadthofourserviceofferings,togetherwithourexpandinggeographicreach,positionuswelltocontinuetodevelopinspiteofthechallengingconditionsinanumberofourmarkets。

ThegroupsaidtheprimarydriversforfuturegrowthwillbetheincreasingrequirementsfortheUKpublicsectortooutsourceservicesinordertodeliverefficiencygains,togetherwithexpandingdemandforinfrastructureinvestmentintheworldsfastergrowingeconomiesparticularlyQatar。

FurtherprogresshasbeenmadeinagreeingthetaxtreatmentofcashflowsfromInterservesMiddleEastoperations,thegrouprevealed。

This,combinedwiththeagreementsreachedinthe

firsthalfoftheyear,underpinstheloweffectivetaxrateincorporatedincurrentguidance。

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