Serco shrugs off outsourcers’ gloom with big Barts NHS deal win

Government contractor Serco on Thursday pleased investors by shrugging off the gloom hanging over outsourcers, and confirming a £600 million deal win in London.

Serco said it expects full-year sales to reach £3 billion, with underlying profit of at least £80 million.

Shares in the company rose 1.2p to 134.2p in response.

The FTSE 250 firm has clinched a deal with Barts Health NHS Trust to provide everything from patient catering, to cleaning and laundry services.

The win comes just over two months after Serco said it had been appointed preferred bidder for the contract, which will include working at hospitals such as the Royal London.

Chief executive Rupert Soames, a grandson of Sir Winston Churchill, said good progress was being made on a turnaround of the business.

Serco has had a litany of disasters in recent years, including charging the Government for tagging some criminals who were dead, imprisoned or non-existent.

The upbeat update contrasts with rival outsourcers, including embattled Mitie, who have been struggling with rising costs and client indecision following the Brexit vote.