Serco CEO defends UK record as firm eyes US contract growth

Serco chief executive Anthony Kirby pushed back against criticism from the New Statesman and political opponents on Thursday as the outsourcing giant reported rising revenue and a growing pipeline that includes new opportunities in the United States.

The London-listed firm, which is one of Britain's largest outsourcing companies running everything from bin collections to asylum accommodation, said it remained committed to bidding for contracts in the UK that provided "complex" services despite contentious coverage of its operations.

Kirby said he rejected "all accusations" in the New Statesman magazine, which has become essential reading for left-leaning politicos, that government outsourcing to firms including Serco had showed Britain had "lost control" and was stuck in a state of "national failure".

The magazine's cover story in June, a week before the Makerfield by-election won by Andy Burnham, pinned the country's infrastructure and immigration problems on outsourcing to Serco.

Serco also came under fire from Reform's home affairs spokesman Zia Yusuf over reports that the contractor would refuse to support deportation plans if it entered government. Yusuf accused it of becoming an "alternative power base to the duly-elected government of the UK", yet a spokesman said in response that the company did not take "political positions" and would continue to offer immigration services.

Kirby said the outsourcing firm, which posted bumper results on Thursday morning and saw its share price grow by over five per cent, had proven that criticism of its operations was wrong.

He referenced its provision of 600 apprenticeships to work in the UK and how 90 per cent of employment for local contracts come from surrounding communities.

"We've been able to push back on all of [the accusations]," Kirby said.

"I'm very proud of what our people do in the UK to deliver complex, mission-critical services. On a number of cases, like I say, we've pushed back."

Kirby also praised recent procurement reforms led by Louise Haigh, Burnham's chief government enforcer, that encourage bidders to focus on local job creation over complying with net zero rules, tackling modern slavery and promoting equality.

The Liverpudlian said the issue was "personal" to him as he had grown up in a council house in the "most deprived area of the country".

He added: "Giving people opportunities to get on and succeed in life is really the linchpin of how we deliver our services locally in those communities."

Responding to questions about Yusuf's criticism and Reform's radical policies to tackle illegal migration, Kirby said Serco had "strict criteria, which is set by the board, around ethics and compliance".

"We judge everything independently. We are an organisation that is built on doing the right thing because it's the right thing to do."

On Thursday, the FTSE 250 firm said it had more contract opportunities coming up across defence and other local services, with its pipeline of potential new work rising further to £12.8bn.

Revenue also came up higher than it had expected at £2.5bn in the first half of the year, with bosses eyeing further wins in the US on areas ranging from managing health centres to defence facilities.

Serco's American subsidiary already serves multiple federal agencies, and the expanded pipeline signals deeper engagement with US defence and health programmes. That growth matters for North American supply chains because the firm often transfers operational models between the UK and its Canadian and US divisions.

Panmure Liberum managing director Joe Brent said that Serco was "used to" negative headlines and it was an "occupational hazard for them".

"The reality is that they save the government money. At times of fiscal strain, the government will have to be pragmatic rather than ideological," Brent said.

Reporting for CityAM Canada on business and the wider Canadian economy.

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