Service Reconfiguration

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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