Debt-hit firm awarded £25m hospital redevelopment work

TROUBLE-HIT government contractor Interserve has been granted a major building contract at Merthyr’s Prince Charles Hospital despite the fact it is seeking a rescue deal.

Shares in the firm, which is one of the UK’s biggest public services providers, fell as low as 6.5p on Friday down from a peak of more than £7 in 2014.

Interserve hopes to resolve its debt problems by issuing new shares

It was revealed on Monday that despite its problems Interserve has been awarded a £25m contract by Cwm Taf University Health Board as part of the next phase of the £36m redevelopment of Prince Charles Hospital in Merthyr Tydfil which is funded by Welsh Government.

The firm has worked with the health board in the past on previous upgrade work at the hospital.

The firm’s role will involve being responsible for developing a new staff changing area within the courtyard and refurbishing the first-floor main switch rooms.

Interserve said yesterday that despite its plan to cut its debt by issuing new shares it is continuing to trade well and is in line with its expectations for the end of 2018.

Divisional Director at Interserve Construction, Carl Read, said: “The award of the Prince Charles Hospital redevelopment contract underscores the close partnership we have established with the Cwm Taf University Health Board.”