Serco Group Stock

Serco Group plc, through its subsidiaries, operates as a service company in the United Kingdom, North America, Europe, the Middle East, and the Asia Pacific.

Segments

The company’s segments include Civil Government, Defense, Transport, and Science.

Civil Government

The company’s work in Civil Government includes home affairs, information and communications technology (ICT), business process outsourcing (BPO), education and children’s services, health, integrated facilities management and consulting. It manages prisons in the United Kingdom, Australia and Germany, electronically monitor offenders, develop systems for law enforcement agencies, controlling immigration and improving civil resilience. Its work includes: border protection, IT and IT-enabled services, government Web portal management, education and children’s services, environmental services, health management and hospital support.

The company runs all education services in two local authority areas and all children’s services in one area, providing services for approximately 500 schools and approximately 20,000 children. Its health business provides clinical services to approximately two million people in a range of primary and community settings and occupational health services for private companies, local authorities and not-for-profit organisations.

The company uses its ICT skills and BPO knowledge to deliver solutions to local government, schools and blue chip private sector customers. The company owns SI International, Inc., a provider of information services, technology, and network solutions in the U.S. federal government services market. It also owns Serco BPO Private Limited, an independent BPO business in the Indian market. The company’s integrated facilities management business provides environmental, streetscene and other direct services to councils, and also works with hospitals and private sector customers.

In 2008, the company was selected by Glasgow City Council for a pioneering joint venture, Known as ACCESS, the joint venture provides property and ICT services, improving outcomes for Glasgow’s citizens. The company has a partnership with Glasgow City Council to transform land, property and information and communications technology (ICT) services.

Defense

The company’s work includes: command/control systems; defence establishments’ management; economic cost analysis; logistics consulting; marine services; port security; secure IT support; through-life capability management, and training and personnel services. The company provides operational support services to the armed forces of the United Kingdom, the United States, Canada, Germany and Australia. It provides training, engineering and operational support, maintain strategic defence assets, and deliver cost analysis, human resources, systems engineering, safety assurance and risk management services.

In the United Kingdom, the company provides training, engineering and operational support to the Royal Air Force and the flight arms of the British Army and Royal Navy. It puts the Royal Navy to sea at its three main U.K. bases, operate and maintain strategic defence assets, such as secure satellite communications and the Defence Academy of the United Kingdom, and provide systems engineering, safety assurance and risk management services.

The company’s skills encompass information technology, professional services, human capital management, engineering and logistics, national security, and intelligence, and serve every branch of the military. It provides training, logistics and operational support services to the Australian Department of Defence, with a presence on every defence base in Australia, and to the German Bundeswehr, including its work at one of Europe’s advanced combat training centres. The company provides information services, technology and network solutions, and enterprise management, engineering, logistics, economic cost analysis and human resources services to the United States military. It provides training, logistics and operational support services to the Australian Department of Defence. The company’s joint venture in Australia, Serco Sodexho Defence Services, was awarded the Integrated Base Services contract for the North Queensland region.

Transport

The company’s work includes: air traffic services, heavy rail operations and maintenance, light rail operations and maintenance, traffic control and transport systems, and transport consultancy. It provides transport services to the United Kingdom and markets in Australia, the Middle East and the United States. The company operates heavy and light rail systems. It engages in the development of integrated traffic management systems. It operates as a private sector supplier of air traffic control services.

With its partner, NedRailways, the company runs Merseyrail and Northern Rail. In Australia, Serco owns and operates Great Southern Rail, including The Ghan and Indian Pacific trans-continental services. During 2008, the company signed the contract to operate and maintain the Dubai Metro system which would commence operation in September 2009.

Science

The company’s work includes: materials science, measurement science, nuclear assurance, research establishments’ management, and technical training. Serco manages science-based organisations and develops and applies scientific knowledge for wealth creation. The company manages the National Physical Laboratory (NPL). The company provides independent specialist nuclear safety advice to the Royal Navy in support of its nuclear submarine fleet. It also offers specialist technical support to the U.K.’s civil nuclear industry, providing safety, environmental, risk and asset management advice and operational solutions across the U.K.’s civil nuclear sites.

In 2008, the company formed a strategic joint venture with Glasgow City Council to improve services for citizens through cohesive, property and information and communications technology services. The company has a partnership with Guy's and St Thomas' NHS Foundation Trust to improve the Trust's pathology services and target the significant national and international pathology market.

Acquisitions

In May 2008, the company acquired 100% of the equity of Grosvenor Health Limited, an independent provider of occupational health in the United Kingdom.

Dispositions

In 2008, Serco disposed of its equity stake in Kilmarnock Prison Services Limited, a 100% subsidiary.