Tuesday 13 November 2018 1:18 pm

Interserve shares collapse by another 20 per cent after hitting 30-year low

Jess Clark is a City A.M. news reporter covering private equity and investment.

Jess Clark is a City A.M. news reporter covering private equity and investment.

Follow Jess Clark
Shares in outsourcing firm Interserve have recovered slightly after a second day of turmoil which saw the price plummet by more than 20 per cent. 

The price was down to 31.19p this afternoon, from opening at 40.19p, after hitting a 30-year low yesterday.

Shares had recovered to 38p after the company issued a statement insisting that its "Fit for Growth" transformation programme is on track.

The statement came after the BBC reported that the infrastructure and support services company plans to raise capital through investors.

The company said: "Interserve confirms that the implementation of the group's strategy and the Fit for Growth transformation programme remains on track and the group continues to expect a significant operating profit improvement in 2018, in line with management's expectations."

Interserve's finances were put under the spotlight when former rival Carillion collapsed in January this year, sparking fears that similar businesses may face the same fate. 

The infrastructure firm's shares fell by more than 12 per cent yesterday as the firm continued to struggle despite a rescue deal that was agreed with lenders in March.

Last week waste management company Renewi revealed that Interserve was delayed in completing the Derby Waste Treatment Centre.

In October the company confirmed it had sold its infrastructure and industrial access and hard services business for £3.6m.