Outsourcer in recovery mode

OUTSOURCING giant Serco has seen its half-year profits plunge by 30pc.

The group saw underlying trading profits drop to £35.3m for the six months to the end of June, down from £50.6m a year earlier.

But Serco said this was expected against ‘challenging’ comparative results, and stuck by its outlook for the year, sending shares up 3pc.

Chief executive Rupert Soames said: ‘Trading in the first half of 2017 keeps us on track to achieve our expectations for the full year.’

The results come as Serco faces a two-week strike by staff at four London hospitals in a dispute over pay.

It cheered a strong flow of orders after it secured its largest ever contract, a £1.5bn deal to run what will be Australia’s biggest prison.