Construction group Interserve has decided to keep its equipment services business RMD Kwikform following a strategic review which began in February.
The group announced that following an eight-month review process it will retain its international formwork and falsework business RMDK and will now spend £17m on downsizing while also developing other parts of the RMD Kwikform global business.
In the UK, Interserve said it planned to invest in the ground shoring business to make it the number one player.
It added it was aiming to retrench activities in less well-performing countries while expanding in more profitable markets.
This strategy will see RMD Kwikform redeploy equipment around its key markets, saving £5m in planned capital spend over two years. Interserve chief executive Adrian Ringrose said this shake-up would improve profitability by around £1m a year.
The company said RMDK, which contributed 32% of total operating profit in 2015, provided an important element of diversification to the rest of the group’s predominantly UK-based earnings profile.
A statement this morning from Interserve said: “Through the strategic review, the board has concluded that we remain the best owner for RMDK and that retaining RMDK as a core part of the group, with an updated strategy, best maximises value creation for shareholders.
“While some of our end markets face some near-term uncertainty, the structural drivers for global infrastructure remain strong.”
