RMD Kwikform at Aldridge buoys performance of construction group parent Interserve

While the group's revenue held steady at £1.65 billion for the first six months of the year, adjusted pre-tax profit fell £19 million to £36.5m "against the backdrop of mixed trading conditions and increasing uncertainty in a number of markets", said Interserve.

The group employs more than 1,100 at businesses across the Black Country and is currently completing a new headquarters building next to Birmingham Airport.

Its UK construction business made a small loss as it restructures, but its international construction did better, winning major contracts in the Middle East.

Its UK services business, which works with the Ministries of Justice and Defence and Network Rail, saw revenues flat "reflecting the hiatus in government procurement around the 2016 EU referendum and this year's General Election". But its order book stands at £5.6bn.

Overseas services work was back in the black but revenue was down 20% after clients cut their spending last year.

But Interserve said it had been a 'resilient' first half performance, with group chairman Glyn Barker said: "Interserve's performance in the first half of 2017 was achieved against a background of challenging market conditions, regulatory and political changes and expected cost headwinds."

Looking ahead, he said: "In the UK, we expect actions taken in the first half, both in construction and support services to lead to a better performance in the second half. In the Middle East, we see the outlook in the region as broadly favourable, notwithstanding the potential impact on general economic activity in the region of continuing political tensions between Qatar and other GCC states.

"Construction International has made good progress, while the actions we have taken to reduce our cost base in Support Services International has created a smaller but more resilient business. We expect our global Equipment Services business will continue to perform well in the second half of the year."

Equipment Services is the company's name for the RMD Kwikform business which creates temporary structures used in major infrastructure and building contracts. The Aldridge firm had a strong first half, matching its record revenue figures from a year ago with £111m in the first six months and adding £24.9m profits to Interserve's coffers.

In Asia-Pacific, it delivered strong performances in Hong Kong and the Philippines, driven by ongoing work on large-scale infrastructure projects, including the Kowloon Rail Terminus, the Hong Kong Macau Bridge and the Manila Bay Development.

In the Middle East it saw growing demand for its work in the UAE, winning work on the Dubai Ports Bridge project, and in Saudi Arabia, where it continues to work on the Riyadh Metro scheme.

RMD also delivered a strong performance in the UK, with work on several ongoing major projects continued, including the Mersey Gateway Bridge, the Medway crossing and Defence National Rehabilitation Centre. Work also continues on sizeable rail improvement projects in Reading and on the Stockley Viaduct project near Heathrow airport.

Interserve employs 80,000 people at home and abroad, with 1,600 across the West Midlands. That includes around 120 at RMD Kwikform’s two sites in Aldridge, staff at offices in West Bromwich and Dudley and another 600 working at Russells Hall Hospital as porters, cleaners, maintenance and catering staff.

Meanwhile the group is preparing for the arrival of new chief executive Debbie White on September 1, replacing Adrian Ringrose.