Serco profits plunge and warns of tough times ahead
Troubled outsourcing firm Serco has seen its profit before tax plummet by 62 per cent to £106m. The company has been hit hard by profit warnings and large fines for overcharging on tagging prisoners.
Ed Casey, acting group CEO, said:
We have been through a difficult year and there remains much to be done to ensure the agreed programme of corporate renewal is successfully implemented. However, the work we have completed and the undertakings we have made demonstrate our commitment to achieve this.
The company highlighted the point that in the second half of 2013 until the end of January 2014 it was barred from winning new contracts from the UK government, which had a significant impact on the business. The company's order book has fallen by £2bn from a year ago.