14 May 2003

At today’s Annual General Meeting of support services group Interserve Plc, Chairman Mike Bottjer said:

“So far this year our success in winning new work includes a £60 million PFI prison at Peterborough, following closely on the heels of the award in December of the £45 million PFI prison at Ashford; providing services on the Army Training Estate  for the MOD under a PPP contract worth some £600 million in joint venture; the Defence Sixth Form College for the MOD under a PFI contract  worth  some £90 million; and a £27 million contract with the Highways Agency for improvements to the A5 north of Birmingham.

“In addition we have secured preferred bidder status on the Armada PFI project for the MOD providing fleet accommodation and services at Devonport, worth around £220 million.

“The long-term outlook for our business is most encouraging with attractive opportunities in growing markets and an increasing record of winning substantial new contracts. Whilst the start of this year was relatively quiet and, as expected, we are having to contend with significant increases in NI charges and general insurance costs, our trading performance is now gathering momentum. In the future we will also progressively benefit from the substantial new contracts recently secured.
 
“This year there are a number of changes to our Board. On 1 July Adrian Ringrose, currently Deputy Chief Executive, will become Chief Executive and I will continue as Chairman. David Keys, our Deputy Chairman, now 69 years of age, retires today and we shall miss his wise and constructive counsel. I am delighted that John Padovan has agreed to take David’s place as Non-Executive Deputy Chairman, Senior Non-Executive Director and Chairman of the Audit and Remuneration Committees  with immediate effect.

“We are mindful of the need to augment the non-executive complement on our Board and this process is proceeding.

“Stuart Lee, our Group Finance Director, has decided to take early retirement and, as announced on 24 April, we look forward to Tim Jones, currently Group Director of Financial Operations at Novar Plc, joining us in his place this summer. As this is Stuart’s last AGM as a Group Board Director I would like to record our appreciation of his sterling work over the past 14 years.

“As has also been previously announced Clive Groom is retiring at the year end and therefore this will also be his last AGM as a Group Board Director. Clive joined us on the acquisition of Building and Property in 2000, and I would  like take this opportunity  to express our thanks to him for his valuable input to the business.

“We continue to focus on our strategy to develop and grow as a support services business, and with the management team now in place I am confident that this strategy will deliver long-term growth in profitability. The future is already significantly underpinned by our forward order book which has grown to some £3.5 billion.”