The services contractor Serco plc says in its latest trading update that Covid-19 has had little overall impact on profits in the first half of 2020; although the firm is sustaining significant losses in some areas of its business, notably in leisure and transport, these have so far been largely offset by additional work elsewhere.
The outsourced services firm says that in the UK it’s operating 20 drive-through test centres with a capacity of over 22,000 tests a day, and has provided 10,500 people as Tier 3 tracers. Given the exceptional circumstances, it’s to perform these contracts on an open-book basis and at margins below normal, the firm reports.
Rupert Soames, Serco Group Chief Executive, said: “The conduct of Serco colleagues during this difficult time has been exemplary, and proud-making. The impact of this virus is very real to us as seven of our colleagues have died as a consequence of the disease and many others have lost friends and relatives. Notwithstanding this, people are working day-in-day-out, many in challenging environments such as prisons, hospitals, trains and asylum-seeker accommodation, serving their fellow citizens and governments.
“Thanks to the significant investments we have made in the last few years in people and systems, the business has shown itself capable of remarkable agility and effectiveness in response to governments’ needs. By way of examples, we commissioned the UK’s first drive-through test centre in two days; in Australia accommodation was provided for 1,500 quarantined travellers on one week’s notice; and as part of the NHS Test & Trace programme we mobilised 10,500 contact tracers in a four-week period. Worldwide, we have mustered over 15,000 full and part-time people to help governments respond to the crisis.”
The firm expects revenue of around £1.8 billion in the first half of 2020, around 23 per cent higher than the £1.5bn reported in the first half of 2019. Among recent reported contracts; with the UK Home Office Immigration Enforcement to manage the Gatwick Immigration Removal Centres (IRC), valued over eight years at £200m.
Mark Irwin, the CEO of Asia Pacific (ASPAC), will succeed Kevin Craven as CEO of UK and Europe.
