Interserve trading in line with expectations, shares flat

Interserve issued an interim management statement, in which the company said that trading was in line with expectations. The facilities management arm was one of the better performers as companies look to outsource services to save costs. They did however confirm that they will have to include an £11.6 million fine by the office of fair trading in the 2009 results. The shares were generally flat on the news, starting slightly down, but ending the day up as the general stock market sentiment was in an upward direction. I'm still very happy to hold Interserve I think it has excellent potential and it is currently available at a P/E ratio of five, although they will have to take an impairment charge on the oft fine, so next year’s P/E might be slightly higher. It is also yielding over 7% and in my view is therefore worth buying for the dividend alone.