Carillion one year on: Government outsourcers are still struggling with growing debt piles January 15, 2019 On the anniversary of Carillion’s collapse, government outsourcers are still reporting ballooning debt levels as they try to balance the books. Kier Group, Interserve, Serco, Sodexo and Sopra Steria, who are all on the government’s list of strategic suppliers for 2019, have taken on hundreds of millions of pounds worth of debt in the last [...]
Late payments: Public sector outsourcers fail to pay cash-strapped suppliers for six weeks January 14, 2019 The government’s most frequently-used outsourcers took more than six weeks on average to pay their suppliers in 2017, 11 per cent longer than two years earlier, data published today reveals. Many of these suppliers are small businesses operating with a limited cash cushion, meaning late-paying clients could easily wipe out their short term liquidity or [...]
Mark Kleinman’s big predictions for the Square Mile in 2019 January 11, 2019 Sir Martin Sorrell’s WPP exit, Unilever’s HQ U-turn, Melrose’s swoop for GKN: 2018 was a year full of surprises in the City. And while forecasting might be a fool’s errand, here are 10 predictions for the year ahead. •Theresa May will decisively lose next week’s “meaningful vote” on Brexit: that’s not a punt that will [...]
Short sellers release pressure on construction outsourcing giant Kier Group January 9, 2019 A period of sustained pressure from short sellers on contractor Kier Group has come to an end, with hedge funds cashing out on the company's stock market woes throughout December. At the end of November, 13.98 per cent of Kier’s shares – worth £102m – were held by short sellers betting against the company. That [...]
Interserve agrees key terms of rescue deal with lenders and is considering handing off building materials unit to lenders December 21, 2018 Interserve has agreed on the key terms of a rescue deal with its lenders and is still considering a debt-for-equity swap by handing off subsidiary RMD Kwikform to the holders of its debt. The British business support services provider said on Friday that its rescue plan will see a big part of the company’s £500m debt converted into [...]
Interserve considers handing off building materials unit to lenders in debt-for-equity swap December 16, 2018 Interserve is tomorrow expected to break its silence on rumours it may sell off its £250m building materials unit, RMD Kwikform, to the holders of its debt. The public sector outsourcing giant, which builds schools and hospitals, is reportedly considering the sale in order to secure its future as it risks drowning in a £650m [...]
Serco stands out from outsourcing crowd with bullish trading update predicting strong profit growth December 13, 2018 Outsourcer Serco delivered a confident trading update today forecasting a 30-40 per cent increase in underlying profit for the year, despite the gloom that is gripping its rivals. The company predicted profit in the range of £90 to £95m, it upgraded its earnings per share forecasts for 2018 and 2019 and said its leverage and [...]
Suppliers uneasy about Interserve payments as outsourcer’s shares edge back from the brink December 12, 2018 Interserve’s suppliers are worried they will not receive payments from the debt-stricken outsourcer, as its share prices nudge back up from a low of 6p. Smaller subcontractors carrying out work on behalf of the company are “extremely worried they will not be paid,” said Rudi Klein, chief executive of trade body Specialist Engineering Contractors' (SEC) [...]
Whitehall ploughs one-third of annual budget into outsourced services, despite ongoing financial misery of the sector December 11, 2018 Whitehall could not abandon the outsourcing of public services even if politicians wanted to because it costs so much, according to research. The government ploughs £284bn – almost one-third of its overall budget – into work done by external suppliers every year, think tank Institute for Government (IfG) said today. The huge outlay is despite the [...]
Can Interserve clean up its mess, or is it destined for the same fate as its failed rival Carillion? December 11, 2018 It feels like we’ve been here before, doesn’t it? It was almost a year ago when outsourcing giant Carillion collapsed, and now there are some worrying signs that rival FTSE firm Interserve could wind up suffering the same fate, serving a huge blow to UK businesses and the livelihoods of its 75,000 employees. On Sunday [...]