Interserve Share Discussion Threads

[fenners66] 16/10/2018 15:40

Why would anyone issue an RNS for bad news if they don't have to....

But they issue an RNS for small snippets of good news....

No spin there then....

[da vinci1] 16/10/2018 13:06

Why would they issue an RNS? The new regime has already made it perfectly clear that tenders/bids for contracts will be much more disciplined. Loss making and/or tenders of narrow margins (potentially lossmaking),will not be tendered just for the sake of inflating a headline 'work pipeline'.

[fenners66] 16/10/2018 11:45

Is there going to be an RNS to say they have lost the current contract ?
Looks as if it was worth about £12-23m a year, that would make it bigger than the stuff they have RNSd.

[cc2014] 16/10/2018 09:19

Pretty inevitable IRV would lose this contract as South West Water's parent company is Pennon. I hold NMD.



South West Water has named its partners for the H5O Alliance to deliver its capital works programme over the next control period.

North Midland Construction will be the main construction delivery partner over AMP7, supported by consultant Stantec UK on design and cost consultant ChandlerKBS.

The deal is expected to be worth around £25m-£45m a year to NMC, equating to up to £225m, while Stantec UK could receive fees over the period of up to £50m.

South West Water may also appoint a second contractor to the alliance, although this process is on hold at present.

Balfour Beatty and Interserve are the present AMP6 H50 alliance partners. Interserve is still working on several legacy energy from waste contracts for South West Water’s parent company Pennon, which blew a hole in the contractor’s balance sheet.

The AMP7 alliance deal is a major coup for NMC, which until now has worked for South West Water only on MEICA-type installation work through its Nomenca business.

[windrushg] 15/10/2018 16:45

Oh!so the referendum was democracy in action now was it? And the electorate was not lied to about £x billions in savings going to the NHS in savings every week, and Geoff Hurst's second goal did'nt cross the line etc etc. LOL! Anyway, glad to see the share price finish in the Blue today!

[fenners66] 15/10/2018 15:30

Of course this is a stock market BB so it does have parallels

If you ignore all the losses in any given year then all the companies on the market either make a profit or break even at worst......

but actually a lot of directors do that .... they call the losses "non-underlying"...... BS

[fenners66] 15/10/2018 15:27

"If you removed the 15% of the leave voters.... the remainers would have won"

Wow such an inciteful comment .

So is that how remainers convince themselves that they are correct to defy democracy , ignore the bits they dont like and the result is they actually won !

Aren't you embarrassed saying that ?

If we ignore Geoff Hurst's hat-trick then the Germans won 1966 so we should remove the star of the England shirts - yes ?

[windrushg] 15/10/2018 14:45

The share price would improve considerably if the gov can sort out the 'Brexit' debacle! Let's hope it's better news on Wednesday. What a shame it's come to this! The referendum vote was so close too. If you removed the 15% of the leave voters who voted leave on the grounds that they hate foreigners, then the remainers would have won comfortably IMV. The irony is that the barriers to non-EU migrants will be lowered to make up the shortfall anyway,so the whole charade is completely unnecessary.Britain has cut off it's nose to spite it's face! (and hindered it's own economy in the process).GLA Holders!

[whyyy] 15/10/2018 14:10

I'm told the Head of Communications has been "let go", perhaps things will improve on that front?

[aendjo] 13/10/2018 23:03

Energos (in administration) was originally the “technological partner” - same issue as Glasgow.

[skyblue5] 13/10/2018 11:01

Big problem here is that Interserve were design team also. All messy, excuse the pun.

[skyblue5] 13/10/2018 11:01

Big problem here is that Interserve were design team also. All messy, a use the pun.

[cc2014] 13/10/2018 10:32

The Derby plant was due for commission in March 2017.

IRV need to get it handed over to the Client. One wonders exactly what the problem is.

[cfc1] 12/10/2018 09:06

not sure I udnerstand all this democratic stuff? This is a legally binding contract! Its all about the T&Cs. Democratic votes have nothing to do with it.
Business T&Cs are they key. Council members can say what they like - Lawyers would have a field day.

[sbs] 12/10/2018 07:37

In a representative democracy, you choose people to think about the issues and act in your best interests.This helps solve the problem of the lack of interest the electorate shows in detail and in almost all issues.

[aendjo] 12/10/2018 07:22

Fenners, I am sorry to have to insist but my understanding is what was voted was a request for those entitled to make a decision to consider terminating the contract. Those that could actually make the decision abstained from the vote on the motion (which is an indicator of how they may feel about the subject). This is all well documented in local news and council minutes.

Of course, a quorate decision is valid, irrespective of abstainees. The motion was respected - termination was discussed, considered and put on hold. Even if the council decides to terminate, they will need to follow the appropriate legal procedures. I count on IRV having completed their exit from the exited business of EfW by then, if you’ll forgive the pun.

In regards to my feelings towards democracy, since you kindly asked, I’m with Plato.

As always, good luck with your investment.

[fenners66] 11/10/2018 22:26

jeffian please read more closely
The vote to terminate the contract in the council was democratic and should be acted on , waiting to get a legal opinion on due process is fine - but ignoring the vote and hoping it goes away is undemocratic.

aendjo claims the vote was not democratic just because some abstained....


at the end of the day the council could just pull the plug and suffer the consequences - if due process not followed etc. it might cost them money - but reading the residents opinions its judged that it will not cost them substantial votes.

[jeffian] 11/10/2018 22:05

It's nothing to do with "democracy", it's a contractual matter.

[fenners66] 11/10/2018 21:55

aendjo - if one group abstained from the vote - that still makes it a democratic decision - they have a right to abstain as nearly half our country does at elections - it comes with the territory.

Once a vote has been decided applying your never a "democratic decision" because some abstained renders invalid democracy as a whole, including decisions made in the House of Commons - that's why they have party whips.

So you don't believe in democracy ?

[jeffian] 11/10/2018 15:51

There would certainly be financial consequences arising from a termination of the Derby EfW contract but they could go either way. If the Council were to terminate the contract without good reason and without following precisely the contractual process required, then it's just as possible that the Council would incur penalties, not IRV. I would imagine that is what the Councillors meant when they talked of "a lack of information". You would definitely want a belt-and-braces legal opinion that you'd got it right before pushing the nuclear button.

[aendjo] 11/10/2018 12:57

@Fenners, just to clarify.

There was never a "democratic decision" to terminate the contract.

Such a decision - assuming they have a legal right to unilaterally terminate the contract - will have to be made by the tory-led City Council. All tories abstained from the vote on the "motion to terminate" (which is what was voted). The incinerator was originally supported by Labour (now on opposition) and the project has faced strong opposition for many years.

Interserve is the EPC contractor for the Derby facility, with Renewi (previously Shanks) responsible for running it until 2042. For those not familiar with the terminology (borrowing from Wikipaedia): Engineering, Procurement and Construction (EPC) is a particular form of contracting arrangement used in some industries where the EPC contractor is made responsible for all the activities from design, procurement, construction, commissioning and handover of the project to the end-user or owner.

Handover is due to be completed by this autumn - assuming the facility can pass the relevant testing. I believe that should substantially complete Interserve's involvement with the project.

I am not sure if the Highways England framework decision had an impact on the share price, but thank you for asking. To be honest, I do not even know if Interserve had applied to be in it.

EDIT: I do not think it had an impact - Costain, Balfour Beatty, Kier, Vinci, Galliford Try and all the other winners are all down in the past month and six months.

The winners have not been officially announced yet, but certainly those on the commission would have known for quite some time. I am not disputing that those with access to privileged information can consistently beat the market - you make a very good (if obvious) point. If you are inferring that technical analysis allows you to see the decisions made by those with access to privileged information... well - as I said before - you are entitled to believe whatever you like (there is a lot of literature).

Good luck with your investment.

[fenners66] 11/10/2018 12:15

aendjo - do you think that framework decision has an impact on the share price ?

Do you think the decision was made public the instant it was decided - or would there have been a time delay before they could publish - if so how long?

[fenners66] 11/10/2018 12:12

"This is such an important decision for this council, probably one of the biggest decisions we will ever have to make. Party politics should not come into it."

Since decisions are voted on by politicians that seems a bit like King Canute trying to fight the tide !

Are the council trying to set a precedent for ignoring democratic decisions ?
Where do they stand legally ?

Its ok consulting with the legal team as to how to enact the decision ... but trying just to ignore it is another....

Its a lot like all the politicians that have decided they (the few of them) know better than the populace that elected them to power in a democracy and are seeking to ignore/reverse the democratic decision to Brexit.

They should be sacked and sent to say Russia to experience that kind of democracy first hand.

[aendjo] 11/10/2018 11:37

This one is a bit of a bummer, on the other hand (well called, cc).

Winners revealed for Highways England work bonanza
Grant Prior 3 hours ago

Construction Enquirer, 10/10/18

Highways England has chosen the winners for one of its biggest ever framework deals.

The Enquirer understands the names will be officially confirmed shortly of contractors who have bagged places on the programme worth up to £8.7bn over the next six years.

It is understood the winners are:

North West/North East/Yorks/Humber: Costain, Balfour Beatty, Kier

South West: Vinci, Galliford Try

East & West Midlands: BAM Nuttall, Skanska

South East: BAM Nuttall, Balfour Beatty

East: Skanska, Galliford Try, Costain

The framework replaces the present Collaborative Delivery Framework and sees Interserve, Morgan Sindall, Hochtief and Sisk miss out on the work carve up.

Under the new Regional Delivery Partnership arrangement, contractors will become delivery integration partners, designing and constructing motorway and major A-road projects across England under NEC4 standard terms, with suitable amendments.