10 October 2016 – strategic review
The group has now concluded its strategic review into the future of its Equipment Services business which trades as RMD Kwikform (RMDK). This part of the business generated 32% of group operating profit in 2015 and so is clearly important to the group. Having carried out the review the group has decided to retain the business, which is a global market leader in solving complex engineering problems. Being a global business this helps to provide diversification for the group which is otherwise mainly UK-based. Although Interserve has had a hard year its shares had recovered strongly until recently and the recent fall in the share price from 425p only a month or so ago seems hard to justify. On a low rating and sporting a dividend yield of 7% we believe the shares justify a recommendation of BUY.