Interserve is exiting the Energy from Waste (EfW) business after taking a £70 million hit on an energy centre project in Glasgow.

In its half-year results for the six months ended 30 June 2016, the Group reported an overall pre-tax loss of £34m.

While trading in its UK building and fit-out areas remains "good", the company said issues with EfW projects, including Viridor's £154m Glasgow Recycling and Renewable Energy Centre (GRREC), had resulted in the Board deciding to no longer undertake contracts in the EfW sector.

A total of six contracts are comprised within the Exited Business, with aggregate whole-life revenues of £430m.

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The contracts, which were agreed between mid-2012 - early 2015, are expected to be completed during 2017. Interserve said the financial impact is to be contained in the £70m exceptional loss provision announced in its trading update in May.

Elsewhere, the company reported a 2.4% rise in Revenue to £1.53 billion with headline operating profit up 2% to £62.9m.

Chief Executive Adrian Ringrose said: "Trading in the first half of the year, across the vast majority of our divisions and our regions, has been good, in markets that offer both opportunities and challenges. We delivered a strong cash performance and grew revenue and Headline operating profit.

"We are taking action to exit the Energy from Waste sector. Our assessment of the aggregate impact of exiting this sector is in line with the £70 million exceptional charge we announced in May.

"Despite the increased political and macro-economic uncertainty following the UK's EU referendum, our outlook for the current year remains unchanged. This, together with our significantly improved cash flow and healthy future workload, underpins the Board's confidence in our prospects and a further increase in the interim dividend."

(LM/CD)