Troubled Interserve notches up another win with BBC contract extension

Caitlin Morrison
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The BBC has extended its contract with Interserve (Source: Getty)

Interserve has been granted a £140m contract extension with the BBC, and will continue providing facilities services to the broadcaster until 2023.

Shares in the group went up 2.8 per cent at the open.

The group provides broadcast engineering, energy and utilities management, cleaning, portering and security services for the BBC at its operations in MediaCityUK in Salford, Broadcasting House in Portland Place, London and Pacific Quay in Glasgow.

"Our ongoing partnership with the BBC has been built on our collaborative approach, marrying our expertise in delivering high performance workplaces with the needs of the customer's diverse teams across its UK estate," said chief executive Debbie White.

The outsourcing company has been struggling lately, with weak trading and soaring costs putting a huge dent in the share price - the stock dropped more than 30 per cent after Interserve revealed "disappointing" figures for July and August.

Last week, the group confirmed it was in talks with its lenders over its future, and yesterday it was reveal that consulting firm Oliver Wyman has been brought on board to overhaul Interserve's operations.

The company has been buoyed slightly over the past few weeks with snippets of good news: it's been awarded a £227m contract to buy provide facilities management services for the Department for Work and Pensions for five years, and it won a place on an £8bn government panel to build houses on public sector land.

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