Interserve H1 Profit Down; Confirms Annual Outlook; Hikes Interim Dividend

(RTTNews) - Interserve plc (IRV.L), a provider of construction and support services, Wednesday reported a drop in first-half profit, as higher administration expenses eclipsed strong revenue growth. The company reaffirmed its annual outlook.

For the six months to June, pre-tax profit declined to 28.3 million pounds from 30.7 million pounds a year earlier. Excluding certain items, pre-tax profit stood at 50.2 million ponds, compared with 36.8 million pounds last year.

After-tax profit was 23 million pounds or 14.6 pence per share, down from 24.7 million pounds or 17.1 pence per share a year ago.

Excluding certain items, after-tax earnings were 38 million pounds or 27.2 pence per share, compared with 27.4 million pounds or 21.1 pence per share a year earlier.

Comprehensive income totaled 4.8 million pounds for the 6-month period.

Half-year revenue rose by 28.7 percent to 1.37 billion pounds, from 1.07 billion pounds last year, helped by substantial growth in the support services segment, and to a less extent, in construction. Revenue grew by 9 percent organically.

The board recommended an interim dividend of 7.5 pence per share, up from 6.8 pence last year, payable on October 23 to shareholders of record on September 19.