Interserve share price drops as it confirms talks with lenders

 
Caitlin Morrison
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Interserve is a support services and construction group (Source: Interserve)

Shares in support services firm Interserve dropped 4.3 per cent at the open today after the company confirmed it is in talks with lenders following a dramatic sell-off last month.

Around half of Interserve's market value was wiped away in September after the firm warned that trading in July and August had been "disappointing" and the cost to exit its waste management business would "significantly exceed" the £160m previously guided.

The company has since recovered somewhat, buoyed in part by winning part of an £8bn government contract to build houses on public land.

However, over the weekend reports emerged that HSBC and Royal Bank of Scotland had brought EY on board as financial adviser to deal with concerns over the future of Interserve.

Today, the contractor confirmed that "it is engaged in constructive and ongoing discussions with its lenders".

"Work is underway to provide greater clarity on Interserve's current trading and energy from waste provision, provided in the 14 September update announcement," the company said.

A further announcement is expected in the coming days, the group added.

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