Interserve has reported it is trading in line with expectations during 2010 to date, despite 鈥渃hallenging鈥� conditions in its Support Services and Equipment Services businesses.
This means that 鈥渢he second half weighting of profits will be more pronounced than usual鈥�.
Interserve said that a number of the newer public sector contracts continue to be 鈥渋mpacted by significant mobilisation and transition costs鈥�.
It added 鈥淐ontract cost reduction opportunities are in the process of being realised and the Group remains confident that these contracts will deliver their full potential over the contract life.鈥�
However, the firm's Middle East businesses 鈥渉ave maintained their strong performance into 2010, despite lower activity levels in Dubai鈥�.
Interserve has won around 拢150m of work in Qatar to date, plus a three-year services contract with Maersk Oil Qatar for the supply of manpower and equipment to onshore and offshore facilities worth around 拢20m, and further substation construction awards in Qatar worth around 拢25m.
The firm's order book is in excess of 拢6bn (including the Group's share of Middle East associates).
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