February 28, 2017 / 7:45 AM / 9 months ago

UK's Interserve falls to loss, suspends dividend

Feb 28 (Reuters) - Interserve reported an annual loss and suspended its dividend on Tuesday after the British support services and construction company booked a bigger-than-expected charge on its exit from the energy-from-waste sector.

Interserve fell to a pretax loss of 94.1 million pounds ($117 million) for the year ended Dec. 31 from a profit of 79.5 million a year earlier.

Revenue was largely flat at 3.2 billion pounds, as growth in its international businesses was offset by a modest decline in its UK support services unit due to delays in government procurement partly because of Brexit uncertainties.

The company proposed no final dividend, meaning that its 2016 dividend fell to 8.1 pence from 24.3 pence a year earlier.

“The board has a medium term objective to reduce our overall indebtedness and enhance liquidity levels further whilst continuing to invest in our core businesses. We have therefore taken the difficult decision to suspend the dividend temporarily,” CEO Adrian Ringrose said in statement.

$1 = 0.8047 pounds Reporting by Esha Vaish in Bengaluru; editing by Jason Neely

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