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UK's Interserve sees higher charge to exit energy-from-waste business
February 20, 2017 / 8:01 AM / 9 months ago

UK's Interserve sees higher charge to exit energy-from-waste business

Feb 20 (Reuters) - Interserve Plc, a British support services and construction company, more than doubled the expected charge associated with an exit from its energy-from-waste business to about 160 million pounds ($198.9 million).

The company said it had decided its previous provision of 70 million pounds would not be adequate after a detailed review of operational developments and the impact of a lengthy period of litigation related to a terminated contract in Glasgow.

Interserve, whose activities range from providing care services for people in their own homes to building repairs at Britain’s Sandhurst military academy, said it expected further cash outflows of about 60 million pounds in 2017.

The company had first announced its decision to exit the energy-from-waste business in August, after noting cost overruns and delays in the Glasgow contract. ($1 = 0.8043 pounds) (Reporting by Esha Vaish in Bengaluru; Editing by Amrutha Gayathri)

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