Public sector services supplier Interserve (IRV) has reminded investors to the scale of its debt-for-equity deleveraging plans, with shareholders facing huge losses in the immediate future.

The embattled company puts out an update on Friday on its programme to dig itself out of a deep debt hole, but warns of the stark repercussions. ‘It is anticipated that the issue of new equity will result in material dilution for current Interserve shareholders,’ the company said.

This is not new news, more a clarification of details of the scheme that will see millions of pounds of company debt converted into new ordinary shares. That explains why the share price is modestly higher today, up 1% at 11p, since it puts more meat on the bones of plans for investors to chew over.

Interserve has also announced that its lenders will allow it to defer a repayment on its debts to 30 April 2019, and extension from the original 1 February deadline.

Overall UK markets are typically quiet with investors starting to turn their attention towards Christmas, the holiday and family. The absence of much in the way of corporate news adds to the sense of winding down.

In early trade on Friday the FTSE 100 is about 23 points or so lower at 6,688.53

The pound is worth $1.2693, up 0.3%.

PRICE CAPS ATTACKED

British Gas-owner Centrica (CNA) is planning a legal challenge against energy price caps that are soon to be imposed in the UK, according to reports. The big six energy supplier is thought to believe that the way the caps have been calculated is unfair.

Investors brush off the reports, with Centrica shares staying virtually flat at 135.7p, presumably seeing little chance of getting much change out of regulator Ofgem despite the firm’s calls for a judicial review. The UK watchdog is set to robustly defend its proposals, so the reports say.

Plastic packaging specialist RPC (RPC) has again pushed back the deadline for private equity firm Apollo to make a takeover offer. This is the latest in multiple extensions since RPC first began talks over a buyout.

The company says that the Panel on Takeovers and Mergers has agreed to extend the deadline to 18 January in order for discussions to continue but investors clearly think the chances of a successful buyout being agreed are receding fast. RPC shares have slumped nearly 9% to 126p.

NEW NUMBER CRUNCHERS FOR VODAFONE

Mobile phones giant Vodafone (VOD) is to dump its auditor PricewaterhouseCoopers over a legal dispute. The number crunching firm will stay on to run the rule over 31 March 2019 full year figures before being replaced.

Vodafone sees its share price slide 1.8% to 157p.

Mining giant Anglo American (AAL) said it had restarted operations at its Minas-Rio iron ore operation in Brazil after the discovery of two leaks in a slurry pipeline earlier in the year led to a shutdown.

That cheers up investors, who send shares in the group rallying 1.6% to £17.30.

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Issue Date: 21 Dec 2018