Serco wins new jobseekers contract worth £350m
Serco has this morning announced a £350m contract with the Department for Work and Pensions (DWP) to help find unemployed people new jobs.
Shares in the firm rose 3.0 per cent on the back of the announcement.
The FTSE 250 services provider will run the West central and Wales contracts for the “Restart” programme, which aims to help those without a job for between 12 and 18 months get back into work.
The outsourcer said that the contract would run for an initial four years, with the option of a two year extension. The final value of the contract depends on how many jobs it finds, it added.
Chief executive Rupert Soames said: “We are delighted to have been selected after a rigorous procurement process by the DWP to deliver a significant part of the Restart programme, which is an important component of the Government’s strategy to “Build Back Better”.
“Serco has extensive experience and a proven track record in employment services, and in managing teams of expert partners, including small companies and charities, who will work with us to achieve positive outcomes both for individual job-seekers and the UK economy more generally.”
Analysts at Jefferies said the £350m valuation was “conservative”, because the advertised contract value was £500m.
The firm also announced that it had completed the acquisition of US defence firm WBB for $295m (£215m).
As a result, it has hiked its guidance for the full year. Trading profit is now expected to come in at £185m, up from prior guidance of £175m, with revenue now hitting £4.3bn.