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(Sharecast News) - Public services provider Serco has been awarded two contracts by the UK Department for Work and Pensions to help people find jobs in the West Central region and Wales as part of Downing Street's Restart programme.
Serco said on Tuesday that it estimates the combined value over the initial four-and-a-half-year contract period would be around £350.0m, with the amount dependent on the number of people who find employment.
It also noted the contracts had options to extend for a further two years.
The FTSE 250-listed firm stated that the majority of the income from the Restart contract, which will aim to help people who've been unemployed for 12-18 months get back into work, will be outcome-related - meaning it will only be earned when job seekers have been employed for six months, working an average of 16 hours a week and earning at least the National Living Wage.
As a result, Serco highlighted the contract would actually be loss-making in 2021, with losses expected to be in the range of £5.0m-10.0m, with the contract projected to be profitable thereafter.
Chief executive Rupert Soames said: "We are delighted to have been selected after a rigorous procurement process by the DWP to deliver a significant part of the Restart programme, which is an important component of the Government's strategy to 'Build Back Better'.
"Serco has extensive experience and a proven track record in employment services, and in managing teams of expert partners, including small companies and charities, who will work with us to achieve positive outcomes both for individual job-seekers and the UK economy more generally."
As of 0845 BST, Serco shares were up 2.97% at 145.60p.
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