Angela Monaghan of The Guardian News reported News of Interserve’s troubles early this Friday.

Earlier on Friday, the companies Shares dropped 7% after the government contractor said debts this year would be more than what was expected. This act reignited investors jitters about the financial situation of the firm. The company said their debts would be between £625 million and £650 million by the end of the year. This statement was in contradiction to the earlier issued one when it said debts would be between £575 million and £600 million. The company which is famous for carrying out building work and provision of services such as cleaning is on the brink of incurring the highest debt figure if nothing is done.

This was revealed a week after the firm was forced to comment on its state of finance. The firm’s shares tumbled to a thirty-year low over these fears. Interserve was forced to reveal this after the company was in the danger of heading the same way as Carillion. Carillion was the biggest rival to Interserve which collapsed in January.

The slide was prompted by an update from Renew: waste to the product manufacturer. Renew said Interserve had missed a deadline on a joint venture in Derby that is aiming at producing energy from waste. The update raised speculations that Interserve may be forced to set aside more cash to compensate for delays in their service delivery.

Debbie White, Interserve Chief Executive said for the first nine months this year, the firm was focused on reducing debts, getting its finances in order and leaving its energy from waster business. This she said in a trading update.

She stated “The Board remains focused on positioning the group for long-term, sustainable success. To his end, we will announce a deleveraging plan for the group early in 2019. Interserve has significant opportunities as a best-in-class partner to the public and private sector, and we are working with all stakeholders to put in place the right standards, services, governance and financing to deliver a stronger future for Interserve’s customers and our 74,000 people.”

The net cash inflow was lowered from the forecasted 32 million pounds to 15 million pounds due to the delays in the third quarter. The company was expected to make improvements in operating profit in 2018, in accordance with statements issued and previous expectations.

Investors are no reassured because early trading after the update shares slid to just 32p, the lowest since 1984. Investment director at AJ Bell, Russ Mould said debt piles keep on to add weight on shares. “Chief executive Debbie White and her team are clearly doing their best to steady the Ship at Interserve but the admission that net debt will end the year higher than expected, not helped by how the cash inflow from the troubled energy from waste business will be lower than hope, means the company has yet to reassure shareholders and potential investors about the key issues that face it.”

In March, a £300 million rescue plan was agreed on by the firm which provides a range of services for schools, hospitals and government departments across the United Kingdom. This happened at a time in which pressure was at its peak on the outsourcing sector and in the wake of Carillion’s collapse under a hill of debt.

Russ Mould said that some investors would wonder why Interserve is waiting till 2019 to reveal a new plan which is designed to decrease debt. When the share price slide suggests the company’s situation remain acute. He went on to say: “The lower the share price goes, the more shares Interserve will have to issue and the more dilution shareholders may suffer, should management decide that an equity raising is required to buffer the company’s finances.”

These revelations come as a shock as the firm had denied reports of being on the brink of collapse earlier on this month. in the statement it was said that “Interserve notes recent press commentary surrounding the Group and the movement in its share price, Interserve confirms that the implementation of the Group’s strategy and the fit for Growth transformation program remains on track and the Group continues to expect a significant operating profit improvement in 2018 in line with management’s expectations.”

This year has proven to be a difficult one for the company as it recorded a loss of £6 million in the first half of the year ending on June 30 compared to the profit of about £25 million made in the same period a year earlier.

Months after months, reports have issued this news. Interserve has found a way to not collapse, let’s hope they find a solution as 74,000 unemployed workers won’t boost the economy.