• Covid-19 – click here for the latest updates from Forum Events & Media Group Ltd

  • Worries for education as Interserve woes continue

    960 640 Stuart O'Brien

    The Interserve Board says it’s working with advisers to look at all options to deliver the ‘optimum capital structure for the group to support its long-term, sustainable development’.

    In a statement issued Monday, the beleaguered company said it’s targeting a leverage of approximately 1.5x net debt/EBITDA.

    The discussions also involve proposals to amend the Group’s current financing agreements, including the extension of the maturity dates and repayment profiles of the existing facilities.

    Interserve said it ‘continues to trade well and in line with its expectations for the year ending 31 December 2018’.

    However, shares in the firm nosedived at the announcement, which has many in the education space worried at the possible future implications of another Carillion-style collapse.

    Interserve supports nurseries, schools, academies, colleges and universities with a wide range of capabilities, including:

    • Financing, design, construction and refurbishment of educational facilities
    • Delivering facilities management and support services in universities, colleges and schools
    • Enabling after-hours community access
    • Promoting healthy eating through our Eden brand with menu design and catering provision in 700 schools.

    Interserve has alswo invested in 19 educational PFI projects and supports over 700 schools daily.

    Debbie White, CEO of Interserve, said: “We are making good progress on our deleveraging plan which we expect to announce early in 2019. Our lenders are supportive of the deleveraging plan which will underpin the long term future of Interserve. Our refinancing in April of this year contemplated the development of a deleveraging plan in consultation with our stakeholders and the liquidity injected at that point also gave us the funding to execute our business plan. Our discussions with our lenders are a positive step in the process that was agreed as part of the April refinancing. The Cabinet Office has also expressed full support for the work we are doing to implement our long term recovery plan.

    “The fundamentals of our business remain strong. The deleveraging plan will give Interserve a strong long term capital structure and provide a solid foundation on which to build the future success of the Group.”

    AUTHOR

    Stuart O'Brien

    All stories by: Stuart O'Brien

    Leave a Reply

    Your email address will not be published.