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Serco plans rights issue after 1.5 bln stg impairment charges

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November 10
2:40 AM 2014

Britain's Serco is to raise up to 550 million pounds ($874.5 million) through a rights issue after cutting its profit forecast for this year and next, and writing down the value of its business by 1.5 billion pounds.

Serco, which has been hit by a raft of problems due to failed contracts, said a review had identified likely impairments and further onerous contract provisions totalling around 1.5 billion pounds, with half of that related to goodwill and intangible assets.

It cut its forecast for 2014 adjusted operating profit by around 20 million pounds to 130 million pounds to 140 million pounds. It also cut its 2015 outlook.

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