£500m gets wiped off Serco value
Security and outsourcing giant Serco saw up to half a billion pounds wiped off its value as it faced a freeze on lucrative Government contracts amid a fresh scandal over allegedly fraudulent behaviour.
The group, which runs a vast range of services from prisons to rail services, admitted revenues would be hit and new deals delayed following controversy over its £285m prisoner escort service.
Serco employees allegedly recorded inmates as having been delivered ready for court when in fact they were not.
Shares were down by as much as 17%, reducing the company's value by £500m, though they later recovered some losses.
Investors took fright despite seeing adjusted profits before tax rise 11% to £127.1m on revenues that were up 12% to £2.55 bn.