Outsourcer Serco lands another £280m in contracts because of higher immigration demand
Contractor Serco is set to make a further £280 million because of high demand for immigration services, as the Government faces a record backlog in asylum cases.
The firm has come under fire in the past for the conditions of housing it provides for asylum seekers.
In May, the Observer reported that employees claimed there was a culture of “institutional abuse” at hotels used by Serco to house migrants.
The Government has made reducing the number of asylum seekers arriving in Britain by small boats a priority this year, but its efforts to do so have faced controversy and questions over whether the methods are legal.
Serco made £188 million in profit for the first half of the year, up 52%, as its immigration services, in Australia as well as the UK, helped to offset the reduced need for covid testing.
It upgraded its profit guidance for the second time in just over a month today.
“We are making good progress to deliver profitable growth over the medium term and towards achieving our strategic ambition to be the partner of choice to governments globally,” Serco CEO Mark Irwin said. “Our results over the last six months are a good measure of that progress with double-digit growth in revenue and profit, backed by excellent cash generation.
“Our first half outcomes demonstrate the commitment and capabilities of my Serco colleagues, the value of our geographic and sector diversity as well as our agility to respond to demand across our key markets, all in support of our purpose to impact a better future."
Serco shares are up 2.8% to 159.5p today.
