Interserve Shares Jump After Company Reassures on Outlook Despite Brexit — Update

By Rory Gallivan

LONDON–Shares in support service and construction company Interserve PLC (IRV.LN) jumped Wednesday after it said it is retaining its full-year outlook despite Britain’s vote to leave the European Union.

“Despite the increased political and macro-economic uncertainty following the U.K.’s EU referendum, our outlook for the current year remains unchanged,” the company said.

“This, together with our significantly improved cash flow and healthy future workload, underpins the board’s confidence in our prospects,” it added.

The company earlier reported a pretax loss of 33.8 million pounds ($44.1 million) for the six months ended June 30, against a pretax profit of GBP33.7 million. Revenue, however, rose to GBP1.85 billion from GBP1.8 billion. The loss reflects a GBP70 million charge related to its decision to exit the waste-to-energy conversion business.

The company, which builds schools and offices and offers asbestos removal, fire safety and power services, raised its dividend by 2.5% to 8.1 pence.

Shares at 0838 GMT, up 39 pence, or 12%, at 359 pence valuing the company at GBP523.1 million.

-Write to Rory Gallivan at rory.gallivan[a]; Twitter: [a]RoryGallivan

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