Jaguar Land Rover engine plant helps Interserve reach record interims
DEVELOPMENT of the new £500m Jaguar Land Rover engine plant near Wolverhampton has helped boost the construction arm of support services and building group, Interserve.
The group said first half revenue had increased by a record 8.6% to £1,068.2m (2012: £984m), while the construction division had seen its performance grow by £5.8% to £387.6m (2012: £366.2m).
“UK Construction performed strongly, delivering both revenue and profit growth against the backdrop of continued subdued market conditions. Revenue, boosted by significant activity for private-sector customers such as Jaguar Land Rover, was 5.8% ahead of the equivalent period in 2012, with margins maintained at the top end of our medium-term expectations at 1.9%,” it said.
JLR announced in March that it was to double the size of its plant at the i54 site in South Staffordshire. The move involves pumping a further £150m into the operation, creating an additional 700 new jobs. This was in addition to the 750 already being recruited for the new factory.
The company is making the commitment because of the huge demand for its vehicles on the world stage.
The additional investment brings the total amount pledged by JLR parent Tata Motors into the new plant to more than £0.5bn and underlines the company’s commitment to increase the firm’s presence on the world stage.
Engine production will begin in 2015.
Adrian Ringrose, chief executive of Interserve, said: “We have delivered record revenues and further improved our overall margin in the face of a challenging operating environment based, in particular, on a strong performance in our UK Support Services division. Although performance in International Construction was mixed, we reported strong results within our Equipment Services division, a leading indicator of future construction demand as market conditions begin to improve. We also continued to deliver a resilient performance in UK Construction.”
