Business Review
Date : 31 August 2005
The Business Review sets out Serco's contract wins and operational performance during the first half of 2005, along with developments in our markets. Separately today, we have announced our interim results and released further details of our transition to International Financial Reporting Standards.
OVERVIEW
Serco's vision is to be the leading service company in its chosen markets. The group's strategy is to build a balanced, international contract portfolio through organic growth, achieved by delivering great service and building long term relationships.
That focus on long term relationships, where we can help clients achieve their ambitions through continuous improvement, organisational change and assured service delivery, is reflected in our strong first half performance in delivering growth across markets, notable business wins and high levels of service.
In the period to end June, we signed new contracts valued at more than £700m and were appointed preferred bidder on contracts valued at a further £1.5bn.
The first few weeks of the second half have seen further strong performance.
So far this year, we have signed, or been appointed preferred bidder, for significant contracts valued at more than £1.15bn with the UK Ministry of Defence ('MoD') - Serco's longest standing client.
Our health services business became preferred bidder for a £1.2bn private finance initiative ('PFI') contract to improve services at three hospitals in Leicester, UK.
Our transport division was appointed preferred bidder to operate and maintain a rapid rail transit link in Canada, valued at up to C$600m to Serco.
In addition, Serco won or extended more than 100 small and medium sized contracts during the first half, including business process management and IT services valued at over £100m.
The first half of 2005 also saw the acquisitions of ITNET plc ('ITNET') and RCI Holding Corp. ('RCI') completed and the integration processes begun. Both organisations have been reorganised and renamed, and they are increasingly working with colleagues across the group in developing opportunities and improving performance.
Quality service delivery is the foundation of our growth and in the first half we saw a strong operational performance across the businesses, particularly in rail where our management of the UK's Northern Rail, Docklands Light Railway and Merseyrail has improved train punctuality and availability. In Australia, The Ghan train service has further increased passenger numbers and is looking to increase the frequency of this iconic train journey through the heart of the country.
In the US employees of our federal air traffic control teams once again received a prestigious national award for their services.
Government inspectors found that our education teams in Bradford, UK, had made significant progress in improving the opportunities for children through better delivery of the education service. Inspectors also recommended that further public sector investment would be needed in Bradford to sustain these levels of improvement.
Our environmental service teams serving the people of Woking, UK, have achieved their highest ever satisfaction ratings.
All around the world, people are experiencing a quality of service that makes a difference to their lives. Expectations are met and often surpassed because Serco's public service ethos encourages our people in bringing service to life - which in turn develops our long term relationships and increases the scope and scale of the work we do.