UK-based support services and construction group Interserve has decided to retain and streamline its falsework and formwork company RMD Kwikform, after a strategic review of its operations.
In February, the company announced it would consider its options with its falsework and formwork company, in order to maximise the group’s overall profit.
Following its decision to retain RMD Kwikform, the company will now spend £17 million (€18.88 million) on restructuring its operations, which will include strengthening its positions where the company has market leadership, while investing in growth markets to gain a stronger presence.
The company said it would also enhance its use of digital technology, strengthen its position in ground shoring – initially in the UK – and restructure its operations in a number of smaller, less attractive markets.
Interserve said the cash outflow in the next 12 months would be approximately £5 million (€5.55 million). It added that the benefits of restructuring included a reduction in capital expenditure requirements over the next two years of £5 million (€5.55 million) and an increase to its annual profits of £1 million (€1.11 million) in the first full year of its restructure.
Interserve said RMD Kwikform had a compound annual growth rate (CAGR) of 8% over the last 15 years, and aimed to deliver sustainable margins above 20% over the medium term.
The company said it expected its nine-month and annual results to be in line with expectations.