Following Carillion's failure and Capita's profits warning, the next domino that could be about to fall is Interserve. Interserve is experiencing severe cash flow problems, mainly due to its waste management business on which it has been taking heavy losses for some time. Seeing these contracts through to completion is raising Interserve’s short-term borrowing requirement, forcing it to seek additional funding from banks. Interserve insists that the problems are short-term, arising only from the run-off of the waste management business. However, this was almost entirely due to the waste management business.

Source: Forbes February 27, 2018 15:38 UTC