Ever Decreasing Serco

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04 July 2014 | Updated 01 January 1970

Appointed as CEO in May this year, Rupert Soames (pictured) may well be ruing his decision to move from Aggreko as he stated that Serco was expecting to write down the value of a number of contracts, including the loss making Compass programme that provides accommodation and support services to asylum seekers.

Having already lost £15million on that since 2012, Soames admitted that another £10-15 million might be needed to bridge the gap, although he was confident that the company would still make an expected £170 million in operating profit.

“Whilst difficulties continue on some contracts, overall our trading and financial position is in line with the expectations on which we updated the market two months ago,” insisted Soames. “We are rebuilding trust and confidence with the UK Government and the strategy review is proceeding according to plan. There are many challenges ahead, but I am confident that we can build a strong future for the business.”

However, it has a poor record with its healthcare services, most notably the flop that occurred last year with GP out of hour services in Cornwall and is currently running at a loss with Suffolk Community Healthcare. Another scandal has been the criminal activity of some of its staff at the Yarl’s Wood immigration detention centre.

Pictured: Serco has been hit by poor performing contracts, along with scandals such as at Yarl’s Wood where its staff were guilty of criminal activity. Rupert Soames, Serco’s CEO, has had to take the brunt of criticism since his appointment this May

Article written by Mike Gannon | Published 04 July 2014

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