Serco slims portfolio with sale of occupational health business

Serco Group has slimmed down its portfolio, having sold off its UK occupational health business for consideration of £3.5m. (Release)

Serco had anticipated that the disposed business, which provides occupational health services to 450,000 public and private sector client employees, would deliver restricted growth, owing to it not being entirely in line with other similar operations the company has.

For 2012, the business brought in £15m in revenue and adjusted operating profit of £1m.

In terms of loss for Serco, the provisional value of net assets that are being disposed of is about £6m. Post disposal-related costs, the exceptional accounting loss on disposal is expected to be about £4m.

Christopher Hyman, chief executive of Serco Group plc, said:

I would like to thank our colleagues for their hard work and commitment in developing our occupational health business.

This has become non-core to the future development of Serco's Health portfolio and further progress of the occupational health business can be more successfully achieved under alternative ownership.

We remain committed to serving and developing our core health operations such as community healthcare, non-clinical support services and BPO services, whilst also transferring capabilities to new regions where we see the greatest opportunities as part of our strategy to build a balanced portfolio in markets and geographies around the world.