Profits at outsourcing giant Serco are expected to plunge by almost 50 per cent next year to £50m next year, on revenue down 20 per cent to £2.8bn, according to a statement released today.
The warning follows the loss of a number of key public sector deals which had previously contributed toward a sizeable chunk of its revenue.
Most noteworthy was its controversial electronic taggingdeal with the Ministry of Justice, following revelations the company had been overcharging the department.
Serco is in the middle of a major turnaround following losses in 2014.
The company attributed the drop in profit to its disposal of its Indian call centre business process outsourcing unit for £250m and "net contract attrition".
Serco said its exit from private sector BPO operations will reduce revenue by approximately £300m and profit by £20m.
Rupert Soames, group CEO, said: "We expect to deliver a better performance than we originally expected in 2015, which reflects the fact that we are beginning to make progress and are delivering on our promises." ®