Serco profits up after test and trace win

OUTSOURCING giant Serco saw profits leap as it continued to cash in on Covid-19 Test and Trace contracts awarded by the government.

Profits jumped 31 per cent to £116million for the six months to June, as revenues for its services – which include cleaning and air traffic control – soared by 19 per cent to £2.17billion.

The company said 17 per cent of its earnings were now generated from work it does to support the response to Covid-19.

It won a 12-month, £322million contract to continue running coronavirus testing sites across the UK in June.

Takeover deals for US consultancy firm Whitney, Bradley & Brown and cleaning company Facilities First Australia had also helped drive up profits, it said.

‘Serco has grown very rapidly in the past two years, made possible by the investment we have made since 2014 in transforming our culture, systems and processes, regaining the trust of our customers, and building a strong and experienced management team,’ said chief executive Rupert Soames (pictured).

‘Over 60 per cent of our profits now come from outside the UK, which reflects the success we have had in developing our businesses.’

He said the company now employed 83,000 workers worldwide – 21,000 more than a year ago. Following the ‘extremely strong operational performance’, Serco said it would pay an interim dividend of 0.8p per share to its backers – the first time it has given investors a payout since 2014.