Serco Group plc (‘Serco’ or ‘the Group’), today provides an update regarding our Environmental Services and Leisure businesses. The recent agreement to dispose of the offshore private sector BPO operations has prompted us to review the previously stated intention to also dispose of our Environmental Services and Leisure businesses. Our conclusion is that, for both strategic and financial reasons, the interests of the Group will be best served by retaining these businesses within the portfolio. In common with the rest of the Group, they provide frontline services to public sector customers. In particular, they serve Local Authorities in the UK, to whom we provide a number of other services and we feel that there is real merit in retaining a broad offering to these important customers. Furthermore, the Environmental Services and Leisure businesses have continued to perform well both financially and operationally, and have a strong pipeline of opportunities.