Financial highlights

Strong performance

• As anticipated a strong second half, with a 32 per cent improvement on first half headline pre-tax profit
• Full-year operating cash conversion of 107 per cent
• Full-year dividend up 3 per cent to 18.0 pence per share

Strong financial position

• Significant capacity to drive growth, with £250 million of committed debt facilities renewed until late 2013
• Net debt of £54 million, after pension deficit funding contributions of £22 million and acquisitions of £27 million
• Marked reduction in pension deficit (net of taxation) to £38 million (2009: £69 million)

Confidence in Group’s prospects

• 2011: expect stable trading conditions
• £1.6 billion of workload for 2011, within a substantial total future workload of £5.3 billion
• On track with progression towards c. 5 per cent target margin in Support Services
• Medium term capability to double earnings per share again over five years

“Interserve traded in line with expectations during challenging conditions in 2010, with an excellent performance from Project Services and the initial benefits of our margin enhancement programme in Support Services being offset by cyclical weakness in Equipment Services.

We expect stable trading conditions overall in 2011. Moreover we believe that we have the capability to double earnings per share over five years, given:

- our proven strategy, which has led to a doubling of earnings per share over the past five years;
- our attractive mix of end markets; and
- our strong financial position, with significant capacity for growth.

This confidence is reflected in the Board’s recommendation of the continuation of our progressive dividend policy.”

Adrian Ringrose
Chief Executive