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Growing Interserve announces review

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Support services and construction group Interserve enjoyed strong growth in both profits and revenue in 2015.

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The group has also announced that its RMD Kwikform business in Aldridge has been put under strategic review with disposal an option.

Interserve's pre-tax profit was up 28% to £80m with turnover up 10% to £3.2 billion.

The group, which employs more than 1,000 across the Black Country including sites in Dudley and West Bromwich, enjoyed strong performances in its support services, international construction and equipment services businesses, but only a break-even from UK construction which was hit by three loss-making energy projects.

Chief executive Adrian Ringrose said that UK Construction had a difficult year.

Interserve won new contractswith both new and existing clients including London Underground, B&Q, Superdrug, BS Stanford and the Dubai Aviation City Corporation.

Mr Ringrose said: "Over the last five years we have made substantial strategic progress creating a broader, stronger business. Our performance in 2015 was good, resulting in 12 per cent operating profit growth in markets that continue to offer both opportunities and challenges. In light of the changing shape of our portfolio over the last few years, we have started a strategic review of our equipment services business RMD Kwikform."

He said 2016 was expected to be broadly steady compared to 2015 as underlying growth was restrained by the impact of a slower order intake following an election year and the impact of the National Living Wage, but it expected to return to growth in 2017.

Interserve is building a new regional headquarters next to Birmingham Airport which is due to open early in 2018.

The group employs 80,000 people worldwide.

Interserve has its current construction base in Birmingham and nearly 400 support services and engineering staff at the Intersection House office block in West Bromwich, as well as the 120 at RMD Kwikform's two sites in Aldridge.

After its £250 million takeover of office cleaners Initial Services in 2014, Interserve also has around 100 Initial Services staff working at Castlegate Park in Dudley, while 600 Interserve support services staff work at Russells Hall Hospital.