Interserve shares rose over 18% to 119.4 in early morning trading following the company’s latest trading update.
The construction and services company, which issued multiple profit warnings last year, forecasted better-than-expected operating profit for 2018 due to lower costs
In its latest update, the group insisted it was making good progress with 'Fit for Growth', the three-year programme launched by the new management team in October 2017.
'Fit for Growth' is focused on increasing the Group's organisational efficiency, improving group-wide procurement processes and ensuring greater standardisation and simplification across the business.
Improved operating profit
The board is confident that the cost savings identified will contribute at least £40-50m to group operating profit by 2020, with the in-year impact in 2018 estimated to be £15m.