UK-based construction and support services company Interserve has reported positive results from its construction activities in the GCC region.
“Volumes are up, margins are steady, and order book is growing,” says Adrian Ringrose, CEO, Interserve speaking at the company’s half year results briefing on 24 February.
“We are busy in in the region,” says Ringrose. “In terms of manpower we are pretty stable, maybe even up at 23,000 people in region. We are working across a broad range of verticals, and have long-standing relationships and partners that help us understand the market.”
The company says it is focussing on long term population growth and economic drivers, while remaining mindful of the volatility that the region is currently experiencing. “We have seen two Gulf wars and one financial crisis and we are still here, says Ringrose. “Now is the time to hold your nerve without being blind to the potential downside.”
The company’s international construction revenues, which includes the GCC as well as the Far East, were up by 34 per cent for the half year at £279m ($389m). Total operating profit increased to £13m.
Overall the group had £3.2bn of revenues, up 10 per cent on same period last year, a 12 per cent increase in operating profit to £138m, and a 9 per cent increase in headline profit.
Interserve operates in the GCC construction sector with its joint venture companies Khansaheb Civil Engineering in the UAE, Gulf Contracting Company in Qatar, and Douglas OHI in Oman. It also provides facilities management services, and owns RMD Kwikform.
In November last year, Khansaheb was awarded the $109m main construction contract for the Serenia Residences on Dubai’s Palm Jumeirah.