UPDATE 1-Interserve sees stable 2011 on strong orders, margins

Tue Jan 11, 2011 3:57am EST

Related Topics

* Sees support, project services driving results

* Says H2 '10 trading in line with its estimates

* Shares up 6.6 pct (Recasts; adds CEO interview, share movement)

By Adveith Nair

BANGALORE, Jan 11 (Reuters) - British maintenance and outsourcing firm Interserve (IRV.L)said it expected a stable 2011 on a strong order book and better margins, sending its shares up 6.6 percent.

"The consensus that is emerging for 2011 is very much stable in terms of revenue, which should be somewhere around the 1.8-1.9 billion pounds level," Chief Executive Adrian Ringrose told Reuters.

"And in terms of earnings, perhaps a penny down a penny up, that sort of range...a very similar year to 2010."

Analysts expect revenue of 1.86 billion pounds ($2.90 billion), down 2 percent from estimated 2010 revenue, according to Thomson Reuters I/B/E/S.

Earlier on Tuesday, the company said trading in the second half was in line with its estimates, helped by a margin-expansion drive at its support services business and strength in project services.

"We would expect to see continued growth in our support services division," Ringrose said. "And we'd probably expect to see our project services division come back a bit in 2011."

Interserve said it won more than 500 million pounds worth of contracts in recent months. It has a future workload of more than 5 billion pounds, around 1.5 billion pounds of which relates to 2011.

The company's shares were up 6.6 percent at 249.5 pence at 0855 GMT on Tuesday, making them one of the top gainers on the London Stock Exchange and valuing the company at over 294 million pounds.

The stock has risen more than 25 percent since Interserve forecast a stronger second half in November, outperforming a 3 percent rise in the FTSE All Share Index .FTAS. ($1=.6425 Pound) (Reporting by Adveith Nair in Bangalore; Editing by Vinu Pilakkott)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.