October 10, 2016 / 8:21 AM / 9 months ago

BRIEF-Interserve to keep equipment services unit after review

1 Min Read

Oct 10 (Reuters) - Interserve Plc

* Conclusion of strategic review

* Conclusion of strategic review of equipment services

* Announces conclusion of strategic review of its equipment services business

* Board has concluded that we remain best owner for rmdk

* Rmdk contributed 32% of group total operating profit in 2015

* Whilst some of our end markets face some near term uncertainty, structural drivers for global infrastructure remain strong

* Interserve underpins our confidence in medium-term outlook and in business's ability to deliver sustainable margins above 20%, as we have previously guided.

* In rmdk, will restructure operations in a number of smaller, less attractive markets

* Interserve - non-recurring charges associated with above actions will be about £17 million, of which cash outflow in next 12 months will be approximately £5 million

* Our expectations for rmdk (not group) for full year remain unchanged Source text for Eikon: Further company coverage:

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