State bonanza continues for the crisis-hit outsourcers

Extracts from an article by Rhiannon Bury, Business Reporter at The Telegraph.

“The Government has continued to hand the UK’s troubled outsourcing giants contracts worth billions of pounds despite fears over their financial health and ability to deliver services. Mitie, Interserve, Carillion and Capita have been awarded more than £2bn worth of public sector work since last summer, despite a string of profit warnings and crashing share prices.” [...]

“In total, the four firms were awarded 450 different public contracts in the year to the end of July, the most recent month for which contract information is available. Over the last four years, the four companies have been awarded £16.3bn worth of contracts in total, the research found. The study was compiled exclusively for The Sunday Telegraph by data specialists Tussell.” [...]

“Ministers were criticised after it emerged that a Carillion joint venture had been awarded a £1.4bn contract for work on the new High Speed Two rail line, just days after the group’s share price crashed 70pc on the back of a profit warning. Figures from the Tussell research show that the company won £161m of other contracts in the period, but since then it has also bagged a £158m deal with the Ministry of Defence to manage part of its estate.” [...]

Read the full article on The Daily Telegraph.

Image from: Peter Bryne, Press Association.

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