Interserve nets second bumper deal in a week as shares regain lost ground

Oliver Gill
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Interserve will build almost 750 new homes in Leeds under today's contract (Source: Getty)

Interserve today received a shot in the arm from its customers after revealing its second contract win in less than a week.

The contractor, which has recently warned on soft summer trading and spiralling costs, announced a £70m contract to build hundreds of new homes in Leeds.

Last Tuesday, Interserve led a winning consortium to build two new colleges in Durham, in a deal worth £85m. And the week before, the company was included on a list of contractors able to participate in an £8bn project to redevelop old government buildings into housing.

The work wins are a vote of confidence in the financial stability of Interserve from customers, as in many cases customers pay contractors large sums of cash up front.

Read more: Government hands Interserve £8bn homebuilding framework lifeline

In mid-September, Interserve shares slid 50 per cent after the firm revealed July and August trading had been "disappointing" and the cost to exit its waste management business would "significantly exceed" the £160m previously guided.

Since the announcement, shares have recovered half of the lost ground and are currently trading at just under 116p per share.

However, the London-listed firm – which employs 80,000 people worldwide – is still worth around a third of its stock market valuation at the start of the year.

Today, new boss Debbie White said: “We look forward to playing a central role in the regeneration of Leeds city centre, and creating much-needed new homes in the area.”

Read more: Interserve shares are down 50 per cent: Here's why

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