Interserve - who is most exposed to the troubled strategic supplier?

[This is an abstract of Tussell's special report.  To get the full report sent direct to your Inbox please provide your details below.]

With all eyes on Interserve - one of the government's 28 strategic suppliers - following the steep fall in its share price earlier this week, Tussell has deep-dived into its public sector contracts. Our key question is which public services would be most at risk were they to fall into the same downward spiral as Carillion, as some investors believe they will.

Central Government contract exposure

The FCO is the Central Government department most exposed to Interserve, with 20% of its live contract value held by the company. By value, it is the MoJ that has most exposure to Interserve, and for which it provides the most vital public services - managing probation services across the country.

Interserve Bar chart

Local Government contract exposure

At the local level, it is the London emergency services that are most at risk. The Met Police rely on Interserve for traffic management services and the London Fire Brigade for less critical facilities management work.Interserve horizontal bar 2Learning the lessons from Carillion, the government is no doubt contingency-planning to mitigate the operational risks of a worst-case scenario. But during these already turbulent times, can the country's embattled leadership really run the political risk of another one of its strategic suppliers - and a top 10 contractor to the wider public sector by value - going under?

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