Two years after considering a sell-off for its environmental services division – and a year after reversing that decision – Serco has been awarded new contracts and extensions with a total value of more than £45m.
In December 2014, Serco confirmed reports that the division had been identified as “non-core” to the future of the group and was considering selling it off..
A year later, a U-turn was announced because of “a strong pipeline of opportunities”, with the company being optimistic over growth in the UK resources market.
At the end of 2015, Serco’s environmental services division had contracts with 17 local authorities and a £1.5bn order book.
Now the division has been awarded contract extensions by Woking Borough Council, Charnwood Borough Council and Canterbury City Council for a range of services including waste and recycling collections, street cleaning and landscape maintenance services.
Additionally, the company has been awarded a six-year contract with Milton Keynes Council to manage the care and maintenance of local play areas and equipment, worth £4m in total.
Robin Davies, Serco business development director for environmental services, said: “These important new contract extensions and awards are testament to all the hard work undertaken by our local teams, who are both committed and work tirelessly to provide first-class environmental services to our local authority clients.
“The news also demonstrates the strategic value of our environmental services business to the wider the company. We have a very strong pipeline of future contract opportunities and look forward to further growing our presence in this sector.”
Research conducted for MRW earlier this year revealed that Serco was the ninth biggest waste management company in England by local authority expenditure.
Figures compiled by Porge Research showed that, in 2015-16, the company received 3% of the £2.8bn spent by councils in England on waste services. Veolia topped the list with a 20% share of expenditure.