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United Kingdom contractor Interserve hit by report after Carillion


Lloyds said its fund, which is now available, was for small businesses within Carillion's supply chain that "may now be experiencing financial difficulty". The company insists it won't go bankrupt like its competitor Carillion.

Lloyds' pledge may be followed by similar moves by other banks after the United Kingdom government asked banks to help firms affected by Carillion's collapse, the BBC reports.

The Financial Times today said that United Kingdom ministers are "very worried" about contractor Interserve and have set up a team of officials to monitor the company, following the collapse of competitor Carillion.

The company issued profit warnings in September and October previous year, after it ran into difficulty on a number of waste-to-energy contracts that deal with generating energy in the form of electricity and/or heat from the primary treatment of waste.

The group issued a warning about its results in September following weak trading last summer.

The newspaper said that United Kingdom civil servants had monitored Interserve since a profit warning in September due to concerns over its financial health, citing government advisers and officials.




Gareth Oakley, managing director for SME banking, at Lloyds Bank Commercial Banking, said: "We know how critical it will be for businesses within Carillion's supply chain to receive support with their cashflow, to help them through the temporary challenge to their business".

"We want those other private sector companies to take on those workers".

Interserve is a major supplier to the government across sectors.

At the time, Debbie White, Interserve's chief executive, said: "The new management team, and the board, have been working to stabilise the business and provide a sound foundation to continue to serve our customers effectively, underpin our future growth and to restore shareholder value".

Earlier in the week, in response to Carillion's liquidation, an Interserve spokesman said the company "has very limited direct exposure to Carillion as a customer or partner" but that it continued "to monitor the situation closely".

"Markets pay little attention to Brexit but there are worrying signs like the bankruptcy of Carillion or the decrease in traffic at Eurotunnel", he told Reuters. The impact of Carillion's liquidation on our balance sheet will therefore be minimal, ' it said, adding that net income from Carillion stood at around £500,000. There is clearly too much debt...

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