Oh dear , looks like the British taxpayer will have to fork out again for another sickly and terminal public services outsourcing company . It is estimated that around 70% of Interserves business comes from the UK government , the same government that in January this year informed us that Interseve was not the next Carillion .
In a slight of hand the public are informed that investors and shareholders will have to dilute their own shareholding into a debt for shares
scam scheme . Not entirely true , Interserve have already ceded profitable sections of their entire business model to the banks , RMD Kwikform being just one example . According to a 2015 financial summary Interserve also held around £200 million in property , plant and equipment , I expect the bulk has already been spirited away into the hands of private developers . This is before you factor in the healthy dividends paid to investors since 1997 . I give you a fiver , you give me a pony .
The transfer of public assets and wealth into private hands is normal policy in the UK , I am actually surprised that there is anything left to sell . The vultures have been circling Interserve for several years now , short sell positions have spiked this year , also known as putting the cherry on the cake .
Waste & Mismanagement
The financial issues at Interserve appear to have been focused on its waste recycling division , maybe Interserve was handed the short straw after China imposed an import ban on UK recycling materials . Or did this opportunity represent a final throw of the dice ? No doubt the UK government was warned by china well before the ban , there then followed a costly and ill conceived plan to extract energy from the waste (efw) which was hurriedly put into place .
Which incidentally is what the entire length and breadth of the British Isles may end up smelling like in the future .