Serco slumps after £1.4bn loss

first_imgSERCO boss Sir Rupert Soames has waived a £908,000 bonus after the outsourcing firm reported a loss of £1.35bn for 2014, compared with a profit of £108m the year before. Shares tumbled by 15 per cent as the market reacted to a set of results the company described as “very poor”. According to Serco, the business encountered “critical operational difficulties” during 2014 on some large contracts, which led to an “unexpected increase in costs to levels far above those seen in 2013”. The company also blamed the fact that, due to significant changes in senior management, the business was “operating for a number of months in a strategic vacuum” as the new team worked to develop a “new strategic direction” for the group.As part of the new strategy, Serco is attempting to reduce its debt and bolster its balance sheet. It announced yesterday that it is to carry out a rights issues, with the aim of raising around £550m. Up to £450m of the proceeds raised will be used to repay the company’s debt. The business is also suspending a final dividend for 2014. The group’s chief executive said 2014 had been “an extremely difficult year for Serco”. However, Soames added: “There is a real sense that, having confessed our sins and in taking the punishment, we are now ready to start on the path to recovery. We have all we need: a good plan, strong management to execute it, and, following the successful completion of our proposed rights issue and refinancing, a balance sheet that is an appropriate foundation on which to implement our new strategy.” More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com Express KCS whatsapp Share Show Comments ▼ Tags: NULLcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeHealth Gut BoostRandy Jackson: This 3 Minute Routine Transformed My HealthHealth Gut BoostMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailMaternity WeekA Letter From The Devil Written By A Possessed Nun In 1676 Has Been TranslatedMaternity Weekzenherald.com20 Rules Genghis Khan’s Army Had To Live Byzenherald.comForbesThese 10 Colleges Have Produced The Most Billionaire AlumniForbesNoteableyKirstie Alley Is So Skinny Now And Looks Like A BarbieNoteableyDiscovery29+ Fascinating U.S. Navy WarshipsDiscoveryMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesComedyAbandoned Submarines Floating Around the WorldComedy whatsapp Serco slumps after £1.4bn loss Thursday 12 March 2015 10:10 pmlast_img

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