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Serco supply chain statement

Date: 01 Nov 2010

Serco yesterday reaffirmed to the Cabinet Office that Serco's most recent offer of savings to the UK Government will not result in any of the Government's cost saving programme being passed on to our suppliers.

Serco has an ongoing procurement process with our supply chain partners, which has been underway for more than five years. This is part of our regular management system.

More recently we have also been working with the Cabinet Office as part of their efficiency programme, which has involved discussions with our leading suppliers. As a result our plans evolved and we decided not to seek or accept any contributions from our suppliers, who had recently received letters asking for rebates.

As a company that values our relationships with all our supply chain partners, large and small, we deeply regret this action and apologise unreservedly to them for the concern that this has caused. We are now communicating this to our supply chain partners and retracting the letters.

Ends

For further information please contact Serco:
Dominic Cheetham, Director of Corporate Communications, T +44 (0) 20 8334 4334
Marcus De Ville, Head of Media Relations, T +44 (0) 20 8334 4388

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Last Updated: 01 Nov 2010