Key facts
- Serco CEO Anthony Kirby has defended the company against media criticism, particularly from the New Statesman.
- The company reported higher-than-expected revenue of £2.5 billion for the first half of the year.
- Serco's pipeline of potential new contract work has increased to £12.8 billion.
- Kirby emphasized Serco's commitment to delivering complex services and providing local employment opportunities.
- The company's share price rose more than five percent following the announcement of its results.
Serco's chief executive, Anthony Kirby, has strongly refuted recent media criticism, particularly from the New Statesman, asserting the company's commitment to bidding for complex contracts in the UK. The outsourcing firm, which manages services ranging from bin collections to asylum accommodation, faced accusations that government outsourcing had led to a state of "national failure."
Kirby stated that he rejected "all accusations" and highlighted Serco's contributions, including providing 600 apprenticeships and ensuring 90 percent of employment for local contracts comes from surrounding communities. He referenced the company's strict ethical and compliance criteria, emphasizing that Serco operates on the principle of "doing the right thing."
The company also came under fire from Reform's home affairs spokesman, Zia Yusuf, regarding reports that Serco would refuse to support deportation plans. A Serco spokesman clarified that the company does not take political positions and will continue to offer immigration services.
On Thursday, Serco announced robust financial results, with revenue exceeding expectations at £2.5 billion for the first half of the year. The company's share price rose by over five percent following the announcement. Serco also reported that its pipeline of potential new work has grown to £12.8 billion, with opportunities across defence and local services, and is eyeing further contract wins in the US for managing health centers and defence facilities.
Managing director Joe Brent of Panmure Liberum commented that Serco is accustomed to negative headlines, viewing them as an "occupational hazard." He added that Serco saves the government money, and in times of fiscal strain, pragmatism is prioritized over ideology.