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Struggling Interserve wins £140m contract extension with the BBC

Interserve will manage BBC Broadcasting House in London as part of the contract - Anthony Devlin
Interserve will manage BBC Broadcasting House in London as part of the contract - Anthony Devlin

Interserve has been given a boost this week after winning a £140m extension to a contract to provide cleaning and security services for the BBC.

The firm will now manage the broadcaster’s estate until 2023, a four-year extension to its existing contract.

The news comes after a turbulent few weeks for the outsourcer in which it warned that its profits for this year were likely to be half what they were last year amid spiralling costs for a troubled energy-from-waste contract.

It also said there was “a realistic prospect” of it breaching its financial covenants with its lenders.

However, despite its problems, figures revealed by The Telegraph this week showed that the public sector has continued to hand hundreds of millions of pounds' worth of contracts to the company during the last year.

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Shares in Interserve opened 0.65pc higher at 77p on Monday morning on the back of the BBC announcement.

The contract will see Interserve provide facilities management services across 150 sites for the BBC, including its major offices and production facilities at Media City in Salford, Broadcasting House in London and Pacific Quay in Glasgow.

Services range from broadcast engineering, energy and utilities management, cleaning, portering and security.

Debbie White, chief executive at Interserve, said that the contract extension was testament to the strong partnership between the two organisations.

“Our ongoing partnership with the BBC has been built on our collaborative approach, marrying our expertise in delivering high performance workplaces with the needs of the customer’s diverse teams across its UK estate,” she said.

The contract is the second win for Interserve in a matter of days: on Friday it announced that it had been awarded a £227m contract to provide facilities management services for the Government’s Department for Work and Pensions.