14.02.18
Carillion collapse: Serco makes £18m discount on NHS contracts
Public service giant Serco announced today that it will be taking over 15 healthcare contracts across the UK at a £20m discount after Carillion went into liquidation last month.
Initially the contracts were thought to have been worth as much as £47m, but Serco has agreed a deal with the special managers to purchase the work for £29m, reflecting the “re-evaluation of potential liabilities.”
NHS Improvement announced contingency plans immediately after Carillion confirmed it had fallen into liquidation, but the remaining services contracts, across 50 NHS trusts, remained in long-term doubt.
Serco has now confirmed the acquisition of these contracts through a Business Purchase Agreement (BPA), which does not include any of the failed company’s debt.
In a statement on the issue, the firm explained: “The change in consideration reflects Serco’s re-evaluation of potential liabilities, indemnities, warranties and the additional working capital investment required as a result of Carillion’s liquidation.”
Late last year, Serco chief executive, Rupert Soames, reportedly said that the contracts would represent an additional £90m in revenue and £8m in profit to the company, along with significant potential for further income.
Top image: PA Wire
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