Service business Serco has increased its profit expectations in the millions due to the increasing demand for the Covid-19 test and trace service.
Serco Share Price : The outsourcing firm who manages a part of NHS Test and Trace, predicted that demand will remain high and persist longer than anticipated.
It anticipates that profits will be PS15m above what was expected at PS200m for the entire year.
It’s not the first time Serco operates prison and transport services, has seen its profits increase through testing and tracking.
In addition to tracing individuals who might have come in contact with individuals infected with coronavirus. Serco manages a few of the testing websites.
The system of testing and tracking was not a great start in the past year. It was criticized for not being as efficient than the regional public health departments.
‘Strong demand’
This year Serco’s chief executive, Rupert Soames, admitted that test and trace had suffered the “bumpy start”.
Serco announced on Monday that the four divisions of the company were trading more than their budgets for the opening five months the year.
It emphasized the test and trace contracts, saying it in its announcement: “In the UK in particular, volumes on both our testing and tracing contracts have continued to be strong and we now think it likely that demand for these services will continue for longer in the second half than we previously anticipated.”
One division of Serco’s provides Ministry of Defence facilities, including the one at Brize Norton. Serco has also announced on Monday that it had been given a second PS900m contract, but that it would not be a factor in “any material impact on our profits in 2021”.
Mr. Soames declared when he announced the February results that the pandemic accounted for just 1% to profits, but he acknowledged that it contributed PS350m of revenues.
