News Release 07 August 2018 INTERS ERVE PLC HALF-YEAR RES ULTS - PDF document

News Release 07 August 2018 INTERS ERVE PLC HALF-YEAR RES ULTS FOR THE S IX MONTHS ENDED 30 JUNE 2018 RECOVERY PLAN ON TRACK RESULTS IN-LINE WITH MANAGEMENT EXPECTATIONS, OUTLOOK MAINTAINED H1 2017 * H1 2018 Revenue £1,488.3m £1,647.7m Headline t ot al operat ing £40.1m £56.6m profit ** Headline profit before £9.0m £47.0m t ax** Profit / (Loss) before t ax (£6.0)m £24.9m Basic earnings per share (12.4)p 14.8p Headline earnings per 4.6p 28.7p share** Robust financial performance • S ignificant operat ing profit improvement vs. second half of 2017, up £11.5 million t o £40.1 million • Fit for Growt h programme on t arget t o deliver £15 million savings in 2018 wit h £8 million secured in t he first half; significant act ivit y ongoing t o achieve £40-50 million annualised savings by 2020 • Complet ed refinancing providing financial st abilit y for t he Group and new facilit ies t hrough t o 2021 t o enable delivery of t he Group’ s business plan • Agreed sale of Haymarket development in Edinburgh for £49.1 million, complet ing exit of propert y development business and enabling great er focus on core act ivit ies • June 2018 net debt before recognit ion of deferred financing cost s relat ing t o t he warrant issuance of £645.8 million, in line wit h expect at ions. Report ed net debt of £614.3 million, net of £31.5 million of deferred financing cost s. Good operational progress and strategic momentum • Lost t ime inj ury frequency rat e improvement from 1.3 at December 2017 t o 1.1 at June 2018. 1

• Fut ure workload of £7.4 billion (2017 year-end: £7.6bn) wit h significant recent cont ract wins, including AENA (£37 million), King George Hospit al (£35 million), Minist ry of Just ice (£25 million), Foreign and Commonwealt h Office (£67 million) and Durham Universit y (£78 million) • Cont inued t o derisk UK const ruct ion wit h t he complet ion and close out of older cont ract s while rebasing t he business for t he fut ure • S uccessful large-scale mobilisat ions launched for Depart ment for Work and Pensions (3000 employees, 800 sit es) and Depart ment for Transport (1000 employees, 1147 sit es) • Equipment services revenue lower as maj or infrast ruct ure proj ect s in t he UK not repeat ed in 2018 and impact of Qat ar embargo. Order levels st art ing t o improve as we ent er t he second half • Exit ed Energy from Wast e business: progress in line wit h our expect at ions on t he resolut ion of our EfW proj ect s. Alt hough risks t o t he programme st ill remain we are focused on t he complet ion and commissioning of all sit es in t he second half. Chief Execut ive Officer, Debbie Whit e comment ed: “ The first half of 2018 was an import ant period for Int erserve as t he new management t eam t ook act ions t o bring st abilit y t o t he business and agree t he direct ion of t he Group’ s fut ure st rat egy. The ‘ Fit for Growt h’ init iat ives we are implement ing are delivering mat erial cost savings and will result in a simpler, more focused and more effect ive Int erserve. The refinancing t hat we complet ed in April provides a firmer financial foot ing from which t o execut e t hese plans. Today we have a st rat egy t hat provides a clear direct ion, leveraging our areas of st rengt h, where Int erserve can provide compelling cust omer proposit ions, delivered wit h rigorous operat ional and financial discipline. Whilst t here remains a significant amount of work t o do, we have energy and moment um in t he business as evidenced by t he significant new cont ract s wins secured in t he first half of t he year. First -half t rading performance was in line wit h our expect at ions. We cont inue to make progress on t he resolut ion of our EfW proj ect s, alt hough risks t o t he programme st ill remain. We believe t hat t he benefit of t he act ions t aken in t he first half underpin our unchanged full-year expect at ions, as we make furt her progress wit h t he implement ation of t he Group’ s st rat egy and t he Fit for Growt h t ransformat ion programme.” – Ends – 2

For further information please contact: Robin O’ Kelly +44 (0) 7786 702526 Int erserve Toby Bat es +44 (0) 207 3534200 Lisa Jarret t -Kerr Tulchan Communicat ions About Interserve Int erserve is one of t he world’ s foremost support services and const ruct ion companies. Everyt hing we do is shaped by our core values. We are a leader in innovat ive and sust ainable out comes for our client s and a great place t o work for our people. We offer advice, design, const ruct ion, equipment , facilit ies management and front line public services. We are headquart ered in t he UK and FTSE-list ed. We have gross revenues of £3.7 billion and a workforce of circa 75,000 people worldwide. www.int erserve.com For news follow @ int erservenews Legal identifier number: 549300MVYY4EZCRFHZ09 *As set out in t he st at ut ory account s for t he year ended 31 December 2017, t he 2017 result s included various adj ust ment s arising f rom a comprehensive Cont ract Review. In t he main t hese adj ust ment s relat ed t o cont ract s t hat were subst ant ially complet e at t he end of 2016 but where addit ional inf ormat ion has come t o light s since t he 2016 financial st at ement s were signed. The Cont ract Review also ident if ied t he need for addit ional provisions in respect of loss making or onerous cont ract s. The impact of t he Cont ract Reviews and t he result s of businesses classified as “ Exit ed” are present ed as non-underlying it ems (see not es 4) and are excluded f rom t he calculat ion of headline earnings per share (see not e 7). The present at ion of comparat ive informat ion for t he first half of 2017 has been rest at ed t o be consist ent wit h t his present at ion. There is no impact on comparat ive net asset s or st at ut ory profit before t axat ion. **This news release includes a number of non-st at ut ory measures t o ref lect t he impact of non-t rading and non-recurring it ems. Use of t hese non-st at ut ory measures is considered t o bet t er ref lect t he underlying t rading of t he business. S ee not e 11 t o t he condensed consolidat ed f inancial st at ement s f or a reconciliat ion of t hese measures t o t heir st at ut ory equivalent s. 3

MAJOR CONTRACT AWARDS IN 2018 Contract/Client Business Unit BAE S ystems Construction CMC Hospital (Abu Dhabi) Construction Crowne Plaza Muscat Construction Dubai Mall Construction Earthworks (GRS / Acciona/ Ghella) Construction Gatwick Airport Construction Highways England Construction Hyundai S ewage Treatment Plant Construction Jumeirah Beach Hotel Construction Leader S ports Mall Construction Liverpool Women’ s NHS Foundation Trust Construction Northumbrian Water Construction S cientechnic S howrooms Construction AENA S upport S ervices ALS A S upport S ervices Barcelo Viaj es S upport S ervices BT S upport S ervices Carrefour S upport S ervices Castle Gate S hopping Centre S upport S ervices Colleges of Excellence (S audi Ministry of Health) S upport S ervices Debenhams S upport S ervices Eaton Aerospace S upport S ervices Foreign and Commonwealth Office S upport S ervices Groundforce S upport S ervices Instant Offices S upport S ervices King George Hospital (Redbridge) S upport S ervices Metropolitan Police S upport S ervices Ministry of Justice S upport S ervices Northern Powergrid S upport S ervices PepsiCo S upport S ervices Phillips 66 S upport S ervices Presidencia CAM S upport S ervices Qatar S hell GTL S upport S ervices Renfe S upport S ervices S ohar S upport S ervices S outhwark Council S upport S ervices S tagecoach S upport S ervices S yngenta S upport S ervices Thomas Cook S upport S ervices University of Greenwich S upport S ervices Windsor Castle S upport S ervices 4