Sunny

Sunny

max temp: 24°C

min temp: 14°C

ESTD 1874 Search

Services: Serco slumps to half year loss in wake of electronic tagging scandal

16:10 12 August 2014

A Serco prison van.

A Serco prison van.

The new boss of Serco today outlined the scale of the challenge facing the outsourced services giant as it posted a first-half loss of £7.3million.

The figure, which compares with a profit of £106.1m for the same period last year, reflects the loss of contracts including its criminal tagging deal − amid an overcharging controversy − and one-off charges from restructuring and the cost of dealing with Government reviews.

Rupert Soames, who joined as chief executive in May, said the group had won just two out of 10 major contract bids during the first half.

“We have had a poor first half, and we have not won as many new contracts as we would have liked, but there is some good news,” he added. “We expect financial performance in the second half to be much stronger than in the first.”

Serco, whose contracts include running community health services in Suffolk, was last year forced to refund the Government £68.5m for overcharging on criminal tagging contracts and also repaid £2m of past profits from a prisoner escorting contract.

Mr Soames said the events surround the prisoner escort and electronic monitoring contracts had resulted in a number of senior managers leaving the UK business.

“Serco has always emphasised its values-based approach to management, and most employees of Serco were proud that they worked for a company they believed always operated to the highest ethical standards,” he said.

“To discover that this had not always been the case came as a profound shock, and it was no consolation that the misbehaviour discovered was limited to two out of more than 700 contracts. It will take time to heal these wounds and restore self-confidence, and as always, actions will speak louder than words.”

Search hundreds of local jobs at Jobs24

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Giffords Hall Vineyard feature. Including the use of drone technology to measure crop yield. Pictured is owner Linda Howard.

Vineyard owners in Suffolk and Essex say their industry has grown so quickly over recent years that the region may soon follow famous French appellations in seeking protected status for its wines.

Households are still spending more on leisure, but younger consumers a worried about their future finances following the vote for Brexit.

Britain’s households increased their spend on leisure activities last month, but many are concerned about the future impact on their finances from the vote to leave the European Union.

European Union Competition Commissioner Margrethe Vestager speaking during a media conference at EU headquarters in Brussels.
Photo: AP Photo/Virginia Mayo

Technology giant Apple has vowed to overturn a record 13bn euro (£11.1bn) bill after a European Commission ruling that it has an illegal “sweetheart” tax deal in Ireland.

The newly rebranded Fenwick store, previously Williams & Griffin, in Colchester.

Colchester’s new-look Fenwick department store is to be officially unveiled on September 15 following a £35m redevelopment.

12-20 Upper Orwell Street, which could be demolished and regenerated if plans by the East of England Co-op go through

A derelict building in Upper Orwell Street which has been empty for decades could be set for demolition if new plans for the area are approved.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24