(Reuters) - Interserve (LON:IRV) Plc, a British support services and construction company, said it would exit its energy-from-waste business, after it took a 70 million pound charge in the first half from cost overruns and delays in a contract in Glasgow.
The company, whose activities range from providing care services for people in their own homes to building repairs at Britain's historic Sandhurst military academy, said the business has six contracts with total whole-life revenue of 430 million pounds.
Interserve said it expects to complete these contracts during 2017 and the impact of these contracts would be contained within the previously announced charge.
The outsourcing company also reported a 2.1 percent rise in headline operating profit to 62.9 million pounds in the six months ended June 30.
The company said its outlook for the full year remained unchanged despite the increased political and macro-economic uncertainty following Britain's vote to leave the EU.
Many companies serving the UK construction market have warned of a slowdown in recent weeks after Britain voted to leave the EU, as private firms and the government hesitate to award new contracts in an economy contending with the possibility of a recession.
Outsourcing and support services companies, however, have given a mixed outlook about the Brexit impact.
Interserve raised its interim dividend to 8.1 pence per share from 7.9 pence per share a year earlier.