Serco’s Swedish business operates contracts in facilities management, leisure and IT, mainly in the private sector, and the Swedish market does not currently offer the public sector growth opportunities that Serco seeks. As a result, Serco has signed an agreement with CapMan Group (“CapMan”), a Finnish private equity investor, which will take over the contracts held by Serco Sverige AB (and its subsidiaries) on 31 October 2003. The annual turnover of the contracts is MSEK370 (£27.8m). CapMan will pay MSEK74.2 (£5.8m) for the business, generating a profit on disposal of MSEK3.8 (£0.3m).

Serco retains a number of contracts in Scandinavia that are core to its business, in particular a traffic management contract in Stockholm and the operation of the Copenhagen Metro.