Interserve (the renamed Tilbury Douglas) says a "substantial order book and growing markets", gives it confidence about long term prospects.

Chairman Mike Bottjer said the group's growth in 2000, the disposal of two non-core businesses and the acquisition in December of outsourcing business Building & Property, stands the company in good stead for the future. "These factors, together with a record workload of potentially some £3.3 bn provide us with an excellent platform for further long term growth in the expanding services, outsourcing and PFI markets," said Bottjer.

"We now have a portfolio of ten secured Private Finance Initiative (PFI) projects, in six of which we hold a substantial equity stake with an aggregate investment requirement of £18.5m," he added. "Preferred bidder status has been secured on a further five PFI projects."

Interserve chairman Mike Bottjer

The group posted pre-tax profits of £41.4m (£35.3m) before exceptionals and goodwill, achieved on turnover of £927.4m (£739m). Adjusted profits were £34.2m.

During 2000, Interserve transferred to the Support Services sector of the London Stock Exchange and entered the FTSE 250. At the end of the year the group, which includes Interserve FM, acquired facilities management company Building & Property.

Of Interserve's three core operating businesses - support services, equipment services and construction services – the first showed the highest growth at 40%. Turnover in support services was £349.8m (£265.8) with operating profits up £5.4m at £18.8m. The operating margin in support services increased to 5.4% (5%) with total operating margin (before discontinued operations) up 0.3% at 5%.

The company, which now employs around 12,000 people, says it has a record workload of £2.6bn, with a further £700m at PFI preferred bidder stage.

Longer-term contracts won by the services business during the year included work for Halifax, BT, British Energy, GlaxoSmithKline and Eli Lilly. Interserve says the health, education and Home Office sectors continue to be areas of special attention, in particularly for PFI schemes. In 2000 Interserve secured, together with partners, Sheffield Schools, Neath Port Talbot Hospital and Harmondsworth Immigration Detention Centre.

Commenting on the Building & Property acquisition, Mike Bottjer said: Together with our existing business Interserve fm, (this has) given us a substantial and a leading presence in facilities management and is an important step in the implementation of our strategy to build and strengthen our position in the mainstream of the support services sector … we have enhanced opportunities for cross selling between Group activities and have a strong platform from which to benefit from the growing outsourcing market."

Richard Byatt