Serco Profits Increase Thanks to Covid-19 Test and Trace Contract | Company


Serco, one of the outsourcing companies behind the much-criticized NHS coronavirus testing and tracing program, will consider paying a dividend to shareholders after the government contract helped boost profits.Serco shares jumped 18% on Friday after announcing that it expected to make an underlying profit for the year of between £ 160m and £ 165m. This is higher than expected and an increase of more than a third over the previous year’s total. The company will make a decision in December on whether to pay a dividend.

The improvement in performance was driven by the extension of the test and traceability contract, as well as the US government contracts for healthcare and emergency management, Serco said in an unscheduled market update. scholarship holder.

Serco was one of several private companies hired by the UK government to test people for the coronavirus and trace their recent contacts. Serco manages a quarter of the 500 testing sites in the country and provides managers who call possible contacts of people who have tested positive for the virus.

The system has come under heavy criticism for its reliance on the private sector, including multiple outsourcing companies and expensive consultants, for a program seen as a key part of the UK’s efforts to contain the pandemic.

One of Serco’s contracts with the Department of Health and Social Affairs could potentially be worth up to £ 410million. It was criticized because its call managers reached a lower proportion of contacts from people who had tested positive than their local public health counterparts.


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