Troubled outsourcing business Serco has had to write down the value of some large contracts following a major review of the business by led new chief executive Rupert Soames.
The firm, which runs the lifeline Northlink ferry service to Orkney and Shetland from the mainland, said it would book new charges of £10million and £15million on lossmaking contracts for its asylum-seeker support services and a clinical healthcare agreement in Suffolk.
The Hampshire-based company, which also recently won the contract to run the Caledonian Sleeper from 2015, said it was now “rebuilding trust and confidence with the UK Government” after it was banned from all central Government work following allegations the company had overcharged on work tagging criminals last year.
The company has issued three profit warnings in six months and had to raise £160million to shore up its finances.
The firm, which said it was trading in line with its expectations, noted that the writedowns could hit its previously stated forecasts for the financial year.
Mr Soames said: “Whilst difficulties continue on some contracts, overall our trading and financial position is in line with the expectations on which we updated the market two months ago.
“We are rebuilding trust and confidence with the UK Government and the Strategy Review is proceeding according to plan.
“There are many challenges ahead, but I am confident that we can build a strong future for the business; I look forward to providing further updates in due course.”