Another crash for Interserve shares

CONSTRUCTION and support services group Interserve warned it could breach its loan conditions after a second profit warning in two months.

The company said operating profit in the second half would be about half the level of last year, and it has raised the cost of getting out of its troubled energy-from-waste business by another £35m, to reach £195m.

Shares crashed on Monday after the firm revealed it was in talks with lenders, and slumped yesterday to close down another 27.2pc, or 24.5p, at 65.5p.

However, chief executive Debbie White said last night that the group had a strong client base and many strengths.

She added: ‘I believe there is considerable potential for improvement across the company. My team will focus on improving our margin performance in UK support services and ensuring good contract selection in construction, while reducing our cost base.’