Outsourcer Interserve’s share price plummets on news it’s being investigated by the FCA over its handling of inside information

Construction outsourcer Interserve, which suffered a torrid 2017 after issuing a string of profit warnings, today revealed its darkest days may not yet be behind it.

The business announced it is being investigated by the Financial Conduct Authority (FCA), in connection with its handling of inside information and its market disclosures when it exited its energy-from-waste business in 2016.

The FCA’s enforcement division is probing the company from a period of 15 July 2016 to 20 February 2017. Over that period, Interserve’s share price jumped by almost 50 per cent at its peak before crashing back down.

Read more: Interserve’s rollercoaster ride continues as shares bounce back from record lows

“The company will co-operate fully with the investigation and will update the market on the outcome in due course,” Interserve said in a statement.

Since 20 February 2017, Interserve’s shares have lost 66 per cent of their value. In early trading this morning, they plummeted by almost five per cent.

Interserve said in August 2016 that it would exit its energy-from-waste business after a contract in Glasgow caused it to take a £70m hit from cost overruns and delays. The news caused Interserve’s shares to rocket.

The company, which runs a number of contracts for the UK government and was compared to collapsed outsourcer Carillion last year, saw millions wiped from its share price last year after warning of “disappointing” trading.

The government subsequently drafted in Deloitte to monitor the company and ensure it did not fall into administration.

Earlier this year, Interserve managed to thrash out a rescue deal with its lenders, which has helped the company stay afloat.

Read more: Interserve landed with £40m bill from accountants and consultants