Serco to retain environmental, leisure businesses

Serco to retain environmental, leisure businesses

LONDON (Reuters) – British outsourcing firm Serco said on Tuesday it had decided to retain its environmental services & leisure businesses which it had previously stated it would dispose of.

Serco is making changes after a string of contract problems & scandals.

The company said following its disposal of its offshore call centre, it had reviewed its previous intention to dispose of the two businesses & had concluded that for strategic & financial reasons, it was in the best interests of the firm to retain them.

It said the two businesses had a combined annual revenue of around 140 million pounds ($212 million). It maintained its full-year revenue expectation of 3.5 billion pounds.

Last week, the company had warned revenue & trading profit would fall in 2016, due to the sale of its offshore call centre business & some lost contracts, which sent its shares down more than 10 percent.

In March, Serco tapped shareholders for cash & said it was unlikely to return to sales growth for another three years.

(Reporting by Li-mei Hoang; editing by Louise Heavens & Jason Neely)

Source: “Reuters”