Welcome news for the Group after its share price was halved last month.
Companies: Interserve Plc
Interserve (LON: IRV) has announced today it has been chosen to lead a consortium to finance, design, build and operate two new colleges to service Durham University.
The consortium will also include asset management firm Equitix and campus developer and operator Campus Living Villages UK.
Interserve has been chosen as the construction company to build the project, which comprises of two new residential buildings and a student hub.
The welcome news comes a month after more than 50% of the Group's share price was wiped off in a day after Management issued a profit warning.
The Group also announced last week it had won a place on the Homes and Communities Agency's £8 billion Delivery Partner Panel 3 (DPP3) Framework.
Commenting on the contract win, Interserve Chief Executive Debbie White, said:
"Interserve has an extensive portfolio of student accommodation projects, which demonstrates the strength and capability of our teams working in partnership with clients in the further education sector. We look forward to building on our 15-year relationship with Durham University by starting work on this exciting project, following the opening of the Interserve-built Ogden Centre for Fundamental Physics in March."
Shares were up around 2% in early trading this morning as a result of today's announcement.
The stock chart for Interserve isn't a good one for shareholders, with the share price falling from 722p in 2014 to today's price of 117p. The Group currently trades at a PE ratio of just 2x versus the industry median of 14x. Despite Revenue CAGR growth of 11% YoY, margins have suffered due to spiralling costs undercutting contracts.
