Devastating news for colleagues in Warwickshire & West Mercia CRC more redundancies announced with those affected leaving 2 weeks before Christmas. Colleagues in NPS will receive back dated pay rise at the same time colleagues working in the same location loosing their jobs.
Are they frontline staff? Short of staff in London.
PSOs, admin and a couple of resource officers.
Maybe I’ll do some agency work then.
I might join you!
Hounslow is lovely.
Loads of vacancies in Slough.
Yes 2 PSOs.
That’s in my office. Not sure how many in the others.
How awful. We need more staff not less.
It’s my office too. It’s 3 x case admin, 4.5 PSO’s and 2 x UPW.
That’s for the whole CRC, not just one office.
Omg that’s awful. Oxfordshire NPS are desperate for staff - all grades. Deffo should apply x
Need to know the full extent of this.
It’s about 12 FTE across CRC no more than 14
Not surprising - it was made very clear the probation part was losing money over a year ago- when it was announced the contacts would be ended early all the signs were that cuts were on the cards! They’re cutting their losses and will get out!! There was never any thought for staff!!
I am told that the Union reps were instructed to work from home today, that all (other) staff were instructed to be at work for an important meeting, but when arrived given individual interviews. That the redundancies will be selected on the basis of disciplinary record, sickness record, skillset. 40 days process, so just in time for Christmas the absolute bastards. One member of staff telephoned direct to Xxxxx holiday.
I just read the ‘script’ about the consultation period by my ACO.
I am so sorry Xxxxxxxx. I am sure they are following the rules/law, but it is still cruel and rotten treatment.
Also that staff were told that they were not allowed to have a Union rep with them to these meetings.
I had to deliver the message to some colleagues and can categorically say that wasn’t the case in my LDU . Can’t speak for other parts of CRC.
Hi Xxxxxx. I am getting this third hand, so you will be much better informed. Can you say what is happening?
That is bloody outrageous.
I wouldn’t be surprised if union reps were told they couldn’t attend some meetings in some parts of CRC. Those affected were told by an ACO in each office those not told by SPO. Industrial relations in CRC rock bottom with no sign of improvement anytime soon.
CRC are not going to agree to pay rise are they.
Not a snowball in hells chance. It’s going to get a lot worse before it gets better (if it ever does). The NPS are gradually turning into what used to be Probation Trusts whilst CRCs are dying on their knees.
I knew that this wouldn’t happen despite the blurb about the NPS getting theirs and then to get the CRC to match it.
How do u mean about NPS turning into trusts?
CRCs won’t get anything like what NPS have got anytime soon regardless of what NAPO say.
We were right then ... I’m a pessimist by nature by I guessed there wasn’t a snow balls chance in hell.
Bloody awful.
I am so fed up with this all - staff are treated so appallingly. It really makes my blood boil.
This is how privatisation works. They make profits by cutting. Then the cut service is the new standard for the next round of tendering. Repeat until all you have is a person on minimum wage based in a porta loo.
What on earth is going on. We all need to be better informed. Some of us are single parents with mortgages. Why has NAPO fought for 6% for NPS and not the same for CRC when we all pay the same union subscription
We are being told we are not allowed union reps or work colleagues in with us for any except the last consultation meeting. Is that correct? I feel I’d really appreciate the back up of someone else helping to clarify what is said.
This is appalling.
It feels like divide and conquer.
Yes definitely.
Following the announcements today the Mercia branch issued an email to members. We have been taking steps this afternoon which have included direct contact with senior management and will be sending out another email advising members tomorrow morning.
This will answer your questions regarding consultation Xxxx.
Will this information also be sent to staff's personal emails for those who are on leave for some weeks such as Xxxxxxx and others who are on sick leave?
Yes if those are the emails that members have registered with Napo - we will also put the information on the Mercia Facebook page.
Brilliant, am pretty sure you have my email.
We were right then ... I’m a pessimist by nature by I guessed there wasn’t a snow balls chance in hell.
Bloody awful.
I am so fed up with this all - staff are treated so appallingly. It really makes my blood boil.
This is how privatisation works. They make profits by cutting. Then the cut service is the new standard for the next round of tendering. Repeat until all you have is a person on minimum wage based in a porta loo.
What on earth is going on. We all need to be better informed. Some of us are single parents with mortgages. Why has NAPO fought for 6% for NPS and not the same for CRC when we all pay the same union subscription
We are being told we are not allowed union reps or work colleagues in with us for any except the last consultation meeting. Is that correct? I feel I’d really appreciate the back up of someone else helping to clarify what is said.
This is appalling.
It feels like divide and conquer.
Yes definitely.
Following the announcements today the Mercia branch issued an email to members. We have been taking steps this afternoon which have included direct contact with senior management and will be sending out another email advising members tomorrow morning.
This will answer your questions regarding consultation Xxxx.
Will this information also be sent to staff's personal emails for those who are on leave for some weeks such as Xxxxxxx and others who are on sick leave?
Yes if those are the emails that members have registered with Napo - we will also put the information on the Mercia Facebook page.
Brilliant, am pretty sure you have my email.
https://www.lawgazette.co.uk/practice/moj-sets-minimum-standards-to-improve-probation-performance/5068257.article
ReplyDeleteThe Ministry of Justice is looking at how to rebuild confidence in the probation system after acknowledging that providers such as community rehabilitation companies have faced 'significant challenges' due to unforseen changes in the types of offenders coming to court and the sentences they receive.
DeleteThis is some quality bullshit here. it was well advise and documented how terrible idea this was
The government expects probation providers to offer monthly face-to-face meetings with offenders during the first year of supervision, the lord chancellor has told MPs concerned about the government's approach to rehabilitation.
DeleteThe Ministry of Justice is looking at how to rebuild confidence in the probation system after acknowledging that providers such as community rehabilitation companies have faced 'significant challenges' due to unforseen changes in the types of offenders coming to court and the sentences they receive.
Probation services used to be run by 35 self-governing probation trusts, working under the direction of the National Offender Management Service. The then lord chancellor Chris Grayling decided to replace these with the National Probation Service, which would manage high-risk offenders and advise the courts, and 21 community rehabilitation companies (CRCs), which would supervise low- and medium-risk offenders and provide resettlement services to released prisoners.
Responding to concerns raised by the House of Commons justice select committee in its Transforming Rehabilitation report, justice secretary David Gauke said the government 'continues to believe that the underlying principles of the Transforming Rehabilitation reforms were sound, and are determined to build upon lessons learnt and work towards more effective integration of private public and social sector providers in future arrangements'.
The ministry will end CRC contracts two years early. Gauke told the committee the performance under current contracts 'has not been good enough, for a range of reasons'. New arrangements will be introduced from 2020. However, Gauke said the government is 'taking steps to tackle poor performance in the short term including the introduction of new minimum standards so that all providers offer a minimum of monthly face-to-face meetings with offenders during the first 12 months of supervision;.
A full government response to the committee's report will be published next year, when further details of the government's probation plans will be announced.
Responding to Gauke's letter, Conservative Bob Neill MP, chair of the committee, said most of the government response is positive but the committee is worried that the ministry's Strengthening Probation, building confidence consultation does not go far enough.
Neill said: 'We are disappointed that the government has not taken up our recommendation for a review into the long-term future and sustainability of delivering probation services under the models introduced by the Transforming Rehabilitation reforms, including how performance under the TR system might compare to an alternative system.'
Filed Annual Report & financial statement to Dec 2017 here:
ReplyDeletehttps://document-api-images-prod.s3.eu-west-1.amazonaws.com/docs/b5bpYIzG5veHpP9werN97cEJp0NV1mV_fVVTcQE9xJE/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Credential=ASIAWRGBDBV3AKAEKMH7%2F20181109%2Feu-west-1%2Fs3%2Faws4_request&X-Amz-Date=20181109T135652Z&X-Amz-Expires=60&X-Amz-Security-Token=FQoGZXIvYXdzEHoaDM%2BsxhuIqO9S%2BfWFsyK3A8dXBBNMXHIiJH2PS44npTlMa3E%2FPErEnBdQsPmawVuG5jvgCgNs0VuJyo0zd6gClhhKTpSVFa8xzbaensrRzW8RF7ie6agAaUFo3w8cWngZWX3imO5p4GC2vQBZZW0tJKlhZFul6rIfFY%2B%2Fy6UHZ7%2FhVbOukkQ31tStjLTuaZQKu1JIVySMQoxRMxMJx79TwcAESEyevEthex8OZIBVG85dSLtmZQQT23%2BYvJIVqc0le6ipUbOTTNKduuSlOM%2FE3Pz3swi8FIFrR53rHpI8u1v%2FXYJ9aG1J%2BhBkvc8TYYlGyFsSs9HBITiEpExV9bGuQeffgkfX43JSvIawoztu9hxTcWZNM%2BS3W3zgE5zX%2B5He7vdQhm0Ie0AeXrm7MIw3xERUPQz9yElscallihauciKOvR8lGwPbWsBpUCmXTokafk%2BQvSWEEZr%2F5nUsXo%2F6eVKZKQvvtGJr5skHCSxJbieddsg7bXMOCORLL%2BOKvI%2FDdtrFop6cwp0PQvH%2F0BIXZ%2BHY9b%2F436GSg27%2FuC3K7G2Ea60ugY5L5NWuxoAyd4DXpP%2BCK4vzzNydDIll83NviSrT%2ByowelMolIyV3wU%3D&X-Amz-SignedHeaders=host&X-Amz-Signature=490be83740731a3ab193c7d0f15282b2c7e6e73fda6b09209a53f3eeb48676cb
THE WARWICKSHIRE AND WEST MERCIA COMMUNITY REHABILITATION COMPANY LIMITED - Company number 08802535
1 active person with significant control / 0 active statements
Eos Works Limited - Active
Correspondence address - 19-20 The Triangle, The Triangle, Nottingham, England, NG2 1AE
Notified on - 6 April 2016
Governing law - Companies Act 2006
Legal form - Private Limited Company
Place registered - Registrar Of Companies (England And Wales)
Registration number - 6601702
Nature of control
Ownership of shares – 75% or more
Ownership of voting rights - 75% or more
Right to appoint and remove directors
EOS WORKS LIMITED - Company number 06601702
Registered office address - Staffline Group Plc, 19-20 The Triangle, Ng2 Business Park, Nottingham, NG2 1AE
Company status - Active
Company type - Private limited Company
Incorporated on - 23 May 2008
Nature of business (SIC) - 99999 - Dormant Company
The Directors of Eos Works Limited filed a report for the year ended 31 Dec 2017 stating that the company has been dormant since 1 Jan 2016 & that the directors have no plans for the company to be trading in the foreseeable future.
So how does it work that a dormant company with two directors is the sole active person with significant control of the CRC?
NB: The two directors of the dormant EOS Works Limited are C Pullen & M Watts.
* Christopher Pullen is listed as the CRC's Chief Financial Officer who resigned on 15 Feb 2018
* Michael Watts is listed as the CRC's Chief Financial Officer appointed on 15 Feb 2018.
Chris is now the CEO of the parent company, Staffline PLC. EOS were merged with 2 other providers (Avanta and A4e) to form PeoplePlus. How that works structurally in terms of ownership of the CRC, I have no idea!
DeleteIngeus who own dlnr and swm crc has been sold to an australian company so possible further cuts there
ReplyDeletethewest.com.au/business/mergers-and-acquisitions/anghies-apm-to-double-size-after-buying-ingeus-ng-b881016137z
DeleteWA disability employment company APM has doubled in size and expanded its footprint to 10 countries after buying a firm that was once owned by former prime minister Kevin Rudd’s wife Therese Rein.
ReplyDeleteThe acquisition of Ingeus, which Ms Rein founded 30 years ago and sold to America’s Providence Services in 2014, means APM will be responsible for the employment of more than 5500 people around the world.
The Perth firm part-owned by WA rich listers Megan Wynne and husband Bruce Bellinge will turn over about $800 million a year after taking over Ingeus’ government-sponsored employment programs in Britain, the US, Canada, South Korea, Germany, Switzerland, Singapore and Spain.
APM’s local operations will get bigger through the addition of Ingeus’ Australian arm, Assure Programs.
The deal is subject to several official approvals that are expected to be granted within four weeks. Once finalised, the acquisition will make APM an internationally significant player in the welfare-to-work industry, supporting more than 350,000 people.
The fast-growing sector involves employment companies assessing people for suitable jobs, rehabilitating those who are not work-ready and supporting them while they are in the workforce.
“There is strong alignment between APM and Ingeus,” APM chief executive Michael Anghie said.
“Around the world, governments are facing many challenges such as ageing populations, increasing mental health issues, pressured health budgets, migration and integration, and technology that is changing job opportunities. Some important solutions to these challenges relate to work, health and behaviour change, which is what Ingeus and APM both do really well.”
Ms Rein sold Ingeus to Providence Services in 2014, pocketing an estimated $60 million in the deal.
Ms Wynne, an occupational therapist, founded APM in 1994. She grew it into a business supporting 1700 people and last year sold a majority stake to private equity group Quadrant in a deal that valued APM at $400 million.
Oh God. Not that I was (in NPS) running about gobsmacked with the generosity of my employer and humbled in my gratitude, but a bit of a pay rise was welcome. That this wasn't rolling out to CRC staff left a very bitter taste, and I had some doubts as to what pressure this would apply to the CRCs, bar making NPS posts attractive to experienced CRC staff (Not that I am over-egging the attractions of HMPPS) But this THIS. The absolute bastards. Its almost like it was timed to make everyone across the piece as miserable as possible. I promise you, CRC colleagues, to do anything within my power to have your back, but what would that be? What is going on? New instructions (face to face meetings, eg) indicated increased staff activity, so I was half expecting recruitment, so why this? does anyone have a theory? Happy Friday not
ReplyDeleteSome advice to those in that Facebook group;
ReplyDelete1. Nothing on the internet / social media is anonymous.
2. Posting in a secret Facebook group with staff of all grades present is not anonymous and does get you into trouble.
3. Union reps / officers are the only ones that can speak freely as long as their views are supported by their unions.
4. If you fear your views being made public then be mindful of not making the views of others public (see post below from that group which Jim will delete).
This comment has been removed by a blog administrator.
DeleteSoz, I did mean to remove the names. But you see my point, mistakes are easily made !
DeleteThe welfare & employment of probation staff is hardly a concern for this Govt or Napo HQ. We are just bargaining chips in an accountant's fantasy role-play:
ReplyDelete8 July 2015 - Michael Gove letter to Ian Lawrence:
"I am content to grant Napo an extension until 31 December (check-off) in exchange for your ongoing commitment to reform terms & conditions & negotiations about collective bargaining arrangements." Cheers Ian.
Caroline Dineage MP writing to a constituency MP about TR, August 2015:
"Your constituent queried Sodexo's position on Enhanced Voluntary Redundancy (EVR). I would like to reassure them that the Ministry of Justice's position on the National Agreement on Staff Transfer and Protections remains unchanged. Any proposals to amend these terms will need to be done through negotiation with the Trade Unions and in accordance with applicable employment law. Where Sodexo are looking to offer differing terms than the Enhanced Terms, we are working closely with them to ensure they comply with their contractual obligations." No such thing happened.
The Govt's provision of Modernisation Fund money was to pay for the known, pre-planned job losses that bidders had factored into to their proposals and as such the loss of hundreds of probation jobs was engineered & funded by the Government. Napo were involved throughout, however meekly. Andrew Selous from Hansard in July 2015:
"Under the enhanced voluntary redundancy scheme opened in advance of the transition of the Community Rehabilitation Companies (CRCs) to new providers, probation staff were able to apply for voluntary redundancy on the basis that they would leave the service by 31 March 2016. The total cost of these redundancies was £16.4m. All remaining Modernisation Fund monies were awarded to CRCs. Redundancy funding was allocated pro-rata to CRCs based on their size and estimated future staffing requirements."
Note: "... REDUNDANCY SCHEME OPENED IN ADVANCE OF THE TRANSITION..." - it was known about from the very beginning.
And further job cuts are not too far away - and they'll be increasingly severe as the accountants monitor their balance sheets.
Wonky Links bailed out by asset management group Aurelius; Ingeus sold to APM, majority owned by private equity giants Quadrant; Interserve on the ropes...
Sodexo will be scuppered by whatever Brexit becomes... but not before they've cleaned out the UK Treasury
DeleteWonky details please a new bail out or a government funded Aurelius bail out to keep that wreck afloat.
DeleteFrom Qudrant Private Equity website:
Delete"Quadrant has a strong track record of partnering with management and other shareholders through our investment horizon.
We have significant experience in preparing businesses for exit and bring a successful track record in this regard."
Brace yourselves for an exit if you're in an Ingeus CRC.
A review of Interserve share prices:
Delete15 Nov 2013 - 618p
14 Nov 2014 - 577.50p
Purchase of CRC 1 Feb 2015
13 Nov 2015 - 533p
18 Nov 2016 - 298.50p
17 Nov 2017 - 80.75p
9 Nov 2018 - 44.48p
Has there been any response to this redundancy news from NAPO HQ to the affected Members yet? (Other than bluster and angstey hand wringing, that is).
ReplyDeletePay your Napo fees and they then facilitate smooth and non contested dismissal. Not a chance Napo and their official in SWM will have a clue what to do.
DeleteFear not. Jim's blog (set up " in the public interest and as part of a campaign to bring the plight of probation to the public") and posters on here presumably will.
DeleteYea and doing so is 100 times more than the lacky effort of nafo.
DeleteNo worries then
DeleteSparky blog attacks won't help galvanise support for those attacked members of staff losing jobs. The union's job is to do just that and as usual no talk of a Napo action
DeleteIf they are not members they can't expect anything else.
Loal reps appear to be supporting the members in the CRC affected and also appears Napo AGS and National Official for the area are responding. This is not a Napo blog so there won't be official input on here. One assumes Unison will also be aware & supporting members
Delete'Supporting members',as a lamppost supports a drunk. This is the Napo leadership that did not see redundancies in the 'foreseeable' future when they signed-up for the split in 2014. As for the Facebook members' angst, bleating is the only sound that some Napo members can make these days.
DeleteEvidence of.."(Other than bluster and angstey hand wringing, that is)." ?
DeleteI find it hard to understand things sometimes.
ReplyDeleteMore redundancies for CRCs. At the same time OMIC is going to remove staff from the community into the custodial estate. At the same time there's a move for more community based sentences instead of short custodials. Then minimum standards are introduced.
Reducing staffing levels in the community whilst increasing the numbers being supervised in the community, I would argue, does not bode well.
Wonder what the average caseload is going to be in 12mths time?
'Getafix
Of course if we did not have a dysfunctional fragmented system staff could steadily migrate hither and thither to meet the strategic needs of the system. But we do not. We do not even have a coherent strategy. Under the incomprehensible TR design touted as innovation and the best of every baying hound with an opinion on the criminal justice system acting out their desires, we have constantly emerging pockets of chaos just like a wild fire where the only solution is a change in the wind direction (government) and a downpour of rain (investment).
DeleteThink the hype about OMIC is completely overblown. Don't see them flooding OMU's with probation at all. In fact we're seeing staff come out of prisons to plug holes 8n the community.
Deletehttps://www.hulldailymail.co.uk/news/hull-east-yorkshire-news/new-doorstep-scam-you-need-2204566
ReplyDeleteIn DDC Napo locally have done a lot
ReplyDeleteMeanwhile Interserve is proposing to 'second' half of its qualified staff to the NPS. Purportedly on a basis of 'ooh we've just realised we've been banding cases wrongly and most of the work can actually be done by unqualified staff' this is self evidently a transparent falsehood, and they're actually looking to offload expensive qualified staff to free up funding for their ministry-ordered 'improvement' to the woeful 'Through the Gate' Service they've pretended to be running these last couple of years
ReplyDeleteThat will provoke some interesting discussions, e.g. do secondees get NPS rates? Who chooses the secondees? Who wants to work at NPS on CRC rates?
DeleteEqual work equal pay. Not hard to understand.
DeleteIn Interserve CGM there is an opportunity for 10 SCM's ( PO's in old money ) to be seconded to NPS - apparently 16 SCM's have shown an interest and will be interviewed - I believe the union's have met with senior management to work out a criteria of which I'm afraid I'm not 100% of ?
DeleteWhat's it got to with the unions.
DeleteTerms , conditions etc and how the CRC's make the final decision on who can go
DeleteThis must be one of those private enterprise 'innovations' that were going to transform the delivery of Probation then - yes, instead of simply employing Probation Officers for reasonable wages now, thanks to the forwarding thinking business masterminds at Interserve, the State can pay even more money to hire those self same probation officers from Interserve who'll keep the extra for themselves!
DeleteGot to wonder whether there's going to be an 'Interserve' soon:
Delete'Interserve paid only 17% of its invoices on agreed terms in the six months to 30 July 2018, according to a new table from Build UK which reveals the payment performance of some of the country’s largest construction firms and clients.
As well as reporting 83% of invoices not being paid within the agreed time, the contractor, currently bogged down with a delayed hotel and residential scheme in London’s West End, took an average of 50 days to pay it suppliers.'
https://www.building.co.uk/news/interserve-queries-more-than-80-of-its-invoices-new-data-suggests-/5096473.article?fbclid=IwAR37VOsyu-Q1HIxn-9fRi_5DxGh6JRWI8njjXQwQxmXNAi2F7HQeTIMuh4g
Not paying 83% of invoices in the agreed time! This must be what they mean by 'Do the right thing' !
Deletehttps://www.interserve.com/careers/working-at-interserve/vision-and-values
1635 the unions can't decide or agree anything it will be take this and soon enough the staff will be retained. It is migration back for some . Unions what a joke.
Delete@18:13 post highlights the hilarity:
Delete1. MoJ (i.e. UK taxpayers) give private company owners a heap of money to pay staff off
2. Private companies pocket most of that cash
3. Private companies complain about contracts
4. Private companies get shitloads more UK taxpayer cash
5. Public sector NPS are short of staff
6. Private companies sell the staff the public are already paying for back to the NPS
Now you can see why these facilities companies are so popular with accountants. And why dumb civil servants+politicians waste so much public money.
And let's not forget that while NPS is short of staff it's not allowed to offer continuity of service - to the same staff who'll now be seconded from Interserve instead. As long as Interserve are getting money though, that's the main thing right? One might wonder how Interserve is proposing to run it's own Probation service without all those probation officers, or at least how it's proposing to run it effectively, but, oh, yes - as long as Interserve are getting money, that's the main thing
DeleteJust as amusing the so-called 'mandarins' like Richard Heaton whine like big babbies at Committees claiming it was never their fault, it was all set in motion before their time, they're only dealing with a legacy decision, wah, wah, wah, wah. And the Committees agree with them!
Delete£150k+ a year, gilt-edged pensions, bonuses, honours, knighthoods, etc etc etc - but it's never their fault. His predecessor Dame Catastrophe was equally blameless about the trail of disaster she left behind at MoD & MoJ.
Parasites.
2013: 'We want to bring in a diverse range of providers, incentivised by PbR, to deliver the majority of rehabilitative interventions, so that we are getting the best out of all sectors'
Delete2018: Interserve 'seconds' the expensive , qualified staff transferred from the public sector probation service to the public sector probation service - 'getting the best out of both sectors'
https://www.dailymail.co.uk/news/article-6376151/Thousands-criminals-fitted-electronic-tags-monitored-funding-cuts.html
ReplyDeleteYes the local branch have a great team.
ReplyDelete•NAPO members voted 97% for
ReplyDelete•UNISON members voted 90% for
•GMB SCOOP members voted 93% for
All % indicates a hidden figure of actual and real voters. The CRC memberships all unions excluded Not democratic on pay equalisation and NAPO Unison GMB not working for their fees from members. The new deal for them means no deal for the rest of the members and even if there could be the result would be the loss of the terms and conditions the current lemmings vote for themselves would tie all members into. Barh Bar said the sheep.
National collective bargaining is long gone(and the employers know it only too well). But given only 60% of eligible NAPO NPS members voted, if you really believe CRC staff would have bothered you're deluded. Apathy rules.
DeleteNot to vote was de facto a vote against. Hence l did not vote. This was not apathy but a deliberate choice. The deal is bad, those of you not on the top will regret it.
Deletehttps://www.fenews.co.uk/press-releases/21945-coleg-cambria-and-chester-university-unveil-uk-s-first-offender-management-foundation-degree
ReplyDelete'Getafix
http://www.cityam.com/268962/interserve-shares-plunge-lowest-level-more-than-30-years
ReplyDeleteBeen following this story. Just because the share price is seemingly disastrously low does not mean this company is going to go bust. The market in share gambling will establish if they have a future and if there is a reasonable chance that they can survive it will continue to be worth a punt. But imagine Dragons' Den, the investors will exact a price and as I have said several times on this blog, which I remain proud to be a contributor to, this is no way to run important public services. If you keep your proverbial ear to the ground, the rumours not necessarily true, would suggest that this company has a backlog of work that is truly astounding, is a recidivist late payer to contractors, and their journey to redemption looks perilous. Is there a private and public sector win win scenario here? I hope so but I am doubtful.
DeleteThe plummeting share price may not necessarily mean Interserve is going to go bust, but the -manyfold - factors driving the loss of confidence in their operation just might, and that is surely why investors are abandoning ship
DeleteIt's a game, and to reiterate my point, public services are more important than the vagueries of such a game.
Delete(about 1/2 hour ago from US newsfeed):
Delete"NEW YORK (AP) — The latest on developments in financial markets (all times local):
4 p.m. - Stock trading turned jittery again after two weeks of gains, pulling the Dow Jones Industrial Average down 600 points.
Technology stocks took some of the biggest losses Monday. Apple slumped 5 percent. Amazon dropped 4.4 percent and Goldman Sachs gave up 7.5 percent.
British American Tobacco, which makes Newport cigarettes, plunged 8.8 percent on reports that regulators were considering a ban on menthol cigarettes."
Its a game for 'the players', but the consequences for 99% are usually dire whichever way the market moves, e.g. high prices, loss of jobs, pisspoor service provision
As an employee of Interserve via a CRC I can safely say their approach to " service provision " is " pisspoor " to both service users and staff and can only see this fall in their share price as another " excuse " to penny pinch and try and squeeze as much work from staff as possible regardless of qualifications , experience etc ( you know the things that used to be important )
ReplyDelete"Over the past two and a half years I have been working with Iain Duncan Smith to transform our welfare state. It’s now time to do the same in justice.
ReplyDeleteAs Employment Minister I pioneered the use of large scale payment by results contracts to help the long term unemployed through our Work Programme. It’s a simple proposition really. You decide what works best, and we pay you when you are successful. It’s an approach that’s already beginning to make a difference getting the long term unemployed back to work.
I plan to bring that same approach to preventing reoffending. We will allow nimble private and voluntary sector providers to innovate, to find the right mix of training and mentoring, to do what works in ensuring that those leaving prison and community sentences do not reoffend."
Grayling's Lies, Chapter 6, Tuesday, 9 October 2012
Even as Transport Secretary Grayling is still causing problems in the Justice System.
Deletehttp://www.newsandstar.co.uk/news/17218120.unpaid-work-scuppered-as-theres-not-enough-buses-to-carlisle-from-alston/
https://www.lawgazette.co.uk/practice/failing-courts-defendant-walked-12-miles-on-unlit-road-at-night-to-get-home/5068270.article
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1542100805569334200.html
ReplyDeleteInterserve to ask shareholders for more cash,and added sources "close to" the company have denied Interserve is close to bankruptcy.
Early trading on Interserv shares, lost over 20% of value and trading at circa 30.8. Shocking whatever the reason this is happening.
ReplyDeleteInterserve are seeking a bailout from investors.
DeleteNot sure they'll get it as they've already had a £300m earlier this year.
They've also been on the governments at risk register for some time and have been tipped to be the next Carillion.
Not sure where they'll be at the end of today, but the CEOs are going to have bad day.
Watch and wait I guess.
'Getafix
Nimble, innovative private sector success.
DeleteWell done, Interserve.
The closing price was about 2% down on the day.
ReplyDeleteIt seems the get rich quick investors were trading for a quick profit, nonetheless companies responsibly for vital services need to have more stability. I have no idea what will happen next and neither do the forecasters seem very certain.
Interserve has enjoyed a few months of relative calm on the stock market following wild swings in its share price between January and May.
ReplyDeleteThat calm ended yesterday when its shares slid 12 per cent before plummeting a further 30 per cent in early trading this morning.
No new information has come from Interserve in recent days to prompt the sell-off. However, Renewi – its process partner on the Derby EfW scheme – suggested last week that the company faced compensation claims over a missed completion deadline.
As a source close to Interserve’s ongoing difficulties told me, this was seen by some as Renewi setting out its position ahead of a possible dispute over liability; any additional costs for Interserve were far from certain though, the source insisted.
Then this morning there was the BBC’s report in which an unnamed former shareholder drew comparisons with Carillion, while casting doubt that the company would find the cash it needed from new investors.
That’s not the most surprising opinion – every expert I’ve talked to about Interserve thinks it needs a rights issue or a debt-for-equity swap.
Exactly what proportion of Interserve’s share price plunge has been driven by the Renewi update and by the BBC’s report is up for debate.
But one thing that is clear from speaking to industry sources is that their faith in the company’s ability to turn things around is starting to fade.
Chief executive Debbie White and her financial right-hand man Mark Whiteling took home a total of just under £800,000, including maximum bonuses of 125 per cent of their salaries, after being in their jobs for around four months.
Their main accomplishment thus far has been the expensive refinancing deal sealed in March. There have been few positive announcements since then.
What we have seen is tinkering at the edges in the form of relatively small-scale disposals, pulling back from an increasingly competitive London market, and some internal operational savings.
This would be fine for a company dealing with a moderate loss looking to sharpen up a bit.
But it falls short of the radical action needed to address a net debt of around £600m, as well as financial covenants that require total borrowing to be cut by around £200m over two years.
Recapitalisation through either a rights issuance or debt-for-equity swap must surely be seriously considered, while the sale of its profitable RMD Kwikform business with its tangible assets must be an option as well, something that was considered and then scrapped under former CEO Adrian Ringrose when EfW problems started to bite.
Interserve has tried to limp on without much change, hoping it is big enough to weather the huge EfW provisions and mounting interest costs on its debts. But investors clearly don’t think this can go on much longer.
One analyst told me most long-term investors would have exited and those still holding Interserve shares were either “in denial” about the company’s problems or holding on in desperate hope that things will be turned around.
For its shares to plummet primarily on the back of rumour and speculation in recent days shows how shaky confidence in the company is.
Time is nearly up for Interserve’s management to be clearer on the measures they are taking to address its slide so they can restore confidence. The contractor issued a statement today in response to media coverage of its share slide, saying its strategy was “on track” and it expected to see “significant operating profit improvement” this year.
Will clients be happy to take this at face value? The current strategy is seeing shareholders head for the door.
David Price, finance and public sector editor, Construction News
Recalls soar.
ReplyDeletehttps://www.birminghammail.co.uk/black-country/number-birmingham-black-country-offenders-15411526
Interserve saw bidding for CRC as a gateway to bigger contracts down the line. I'd love to know where all the money's gone because it's not spent on staff or service users.
ReplyDeleteshare holders and manager payouts
DeleteIf Interserve move to sub 30 on their share price today their survival odds are about the same as Theresa May's.
DeleteKeep a watch. They really are in dire straits.
http://www.cityam.com/269128/debate-following-share-price-dive-should-we-worried
'Getafix
Seriously disheartened by all around me
ReplyDeleteDon't be disheartened - filthy incompetent money grubbers Interserve are about to go under. That will surely kill privatisation in probation stone dead
DeleteG4s and serco will step in
DeleteNah - still excluded
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