Interserve to keep RMD Kwikform
Services giant Interserve has decided to keep hold of its Aldridge-based specialist equipment services arm RMD Kwikform after a strategic review of the business.
The future of the construction engineering business had been unclear while Interserve held its review, but the latest decision appears to provide clarity for its 120-strong workforce.
Interserve said it was now planning to keep hold of RMD Kwikform, and would be putting in place an updated strategy. "The business has a track record of attractive growth, is highly cash generative through the cycle and produces excellent returns on capital," Interserve said in its announcement.
"It is a global business, providing an important element of diversification to the rest of the group's predominantly UK-based earnings profile."
The group had announced the review in February. RMD Kwikform has become one of the world's go-to companies when it comes to the field of formwork and falsework – the temporary structures used for moulding concrete and supporting building work on construction sites around the globe.
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.
"RMDK is a global market leader solving complex engineering problems for its customers, through the application of world-class design and logistics capabilities, backed up by an extensive fleet of specialist equipment."
The business contributed nearly a third of Interserve's total operating profit last year. Much of RMDK's work is overseas, particularly in Asia and the Middle East, "providing an important element of diversification to the rest of the group's predominantly UK-based earnings profile," said Interserve.
A new strategy to strengthen RMDK where it is a market leader, and to drive the use of digital technology, as well as expand its move into the ground shoring market, is expected to cost £17m.
Meanwhile RMDK and other Interserve operations in Birmingham, Redditch and West Bromwich are due to start moving into a purpose-built regional headquarters near Birmingham Airport early next year.
