Some welcome news for Interserve after a tumultuous year so far.
Interserve (LON: IRV) has announced today it has won a place on the Homes and Communities Agency's £8 billion Delivery Partner Panel 3 (DPP3) Framework.
The appointment on the DPP's framework is welcome news for the Group, after a profit warning less than two weeks ago sent shares in the Group tumbling, with more than 50% wiped off its value in a single day.
The four-year framework aims to speed up the construction of residential and mixed-use developments on public land as part of the UK government's plan to increase housing provision through private sector involvement.
Interserve will advise local and central government bodies to help achieve cost and time efficiencies for the development of housing and infrastructure programs, which range from 50 to 500 units each.
Interserve MD Gordon Kew commented:
"Our success in winning a place on this framework highlights our ability to deliver complex projects for our customers. We look forward to advising panel users from the very start of their procurement journey to help solve problems, add value and ultimately deliver quality developments that achieve both time and cost savings."
Interserve has endured a string of bad news announcements this year, including this months profit warning and February's news it would suspend its dividend due to the spiralling costs of its waste contracts, causing shares to dive 33%.
Interserve currently trades at a PE ratio of just 2x versus the industry median of 14x. This year alone share prices have fallen from their 2017 peak of 352p to today's price of 116p.