Interserve warns about trading in Britain, higher costs

(Corrects to say 160 million pounds not dollars in paragraph 3)

Sept 14 (Reuters) - British support services and construction company Interserve (Frankfurt: 860509 - news) said trading in its domestic market in July and August had been disappointing and it expected full-year revenues and earnings to be significantly below its previous expectations.

Interserve, whose activities range from providing care services to people in their homes to repairing Britain's Sandhurst military academy, said trading had been disappointing in its support service and construction units.

The company, which in February expected to book a 160 million pound ($211.33 million) charge on its exit from the energy-from-waste sector, warned on Thursday the final costs could exceed that provision.

Interserve blamed "the anticipated timing and complexities of completion" for the higher costs. It said last year it would exit the business, after it took a charge in the first half from cost overruns and delays in a contract in Glasgow.

($1 = 0.7571 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Edmund Blair)