Interserve posts a decline in profit...

MAINTENANCE and outsourcing firm Interserve reported a decline in full-year pre-tax profit yesterday, citing challenging conditions, and said it expected stable trading conditions in 2011.

Interserve, which last month made a cash and shares approach to peer Mouchel, posted pre-tax profit for 2010 of £64.1m compared to £89.2m in 2009.

The company, which provides services to clients such as the BBC, the Ministry of Defence, the NHS and Sainsbury’s, said profit was lower than in 2009 because of a downturn in its equipment services division.

Interserve said both its project services and support services had reported improved results and that, going forward, it expected to benefit from an improved outsourcing market in the UK.

The company is paying an increased final dividend of 12.4p, bringing the total dividend for the year to 18p.