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Serco hits back at NHS Test & Trace critics as it upgrades guidance

Shares in Serco (LON: SRP) were given a 12 percent boost after the outsourcing firm upgraded its guidance for the full year.

In an unscheduled update, Serco revealed that all regions globally are performing better than expected.

So much so, that it has increased revenue guidance for the financial year 2020 by £200m to around £3.9bn and expects organic sales growth of around 15%, up from c. 9%.

The firm also referred to an extension it has received for the NHS Test & Trace programme indicating it is a reflection of the satisfaction of the ‘quality work’ it has delivered.

Specifically referring to the criticism around the NHS Test & Trace programme, Serco looked to clarify that it is not involved in the whole process:

“However, the part we play, although important, is limited and specific.  Serco contributes to two parts of the process: at the start, we are one of five suppliers running fixed and mobile sites where people go to get tested.  We currently manage about 25% of the 500 sites in the UK, and over the last six months those sites have successfully delivered 1.7 million, or 30%, of the 5.7 million tests carried out under Pillar 2 of the programme.  At the end of the Test & Trace process, and on the tracing side, we are one of two prime contractors responsible for reaching the people identified to us by NHS Professionals as having been in contact with people who have tested positive.  We are not involved in other parts of the process, for instance the design and management of the overall programme, the NHS App, the IT systems, the booking of tests, the provision of test kits, the test laboratories, delivering test results, or the identification of contacts of people who have tested positive. “

The share price of Serco is currently trading at around 133p.

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