An outsourcing firm helping operate the NHS coronavirus Test and Trace programme has revealed it is to repay furlough cash to taxpayers.
Serco, which has contracts including call-handling on the Test and Trace effort, said its ability to "trade strongly" throughout the COVID-19 crisis meant it would also reward 50,000 staff with a one-off bonus.
It said the goodwill payments amounted to a combined £8m giveaway with the bonus accounting for £5m of the sum.
The company had previously revealed only staff working in the leisure and transport sectors had been affected by the pandemic disruption.
Serco won several coronavirus-related contracts via a procurement system that came under fire from the public spending watchdog last week over concerns work was awarded without a competitive process.
The government defended its award of contracts for Test and Trace, saying that it had used the private sector to scale up operations at speed.
Serco, which provides services in hospitals, prisons and nuclear facilities in more than 20 countries, said in an update to investors that it was not the right time to make a decision on re-instating the dividend.
The company did say it expected revenue and profit to rise slightly in 2021 - aided by the acquisition of a cleaning and maintenance provider in Australia.
It also revealed an intention to buy up to £40m of shares in the coming months.
Its stock rose by almost 6% in early deals.
Chief executive Rupert Soames said 2020 would be remembered as "one of the most challenging periods for businesses since the Second World War."
He added: "Serco's people have proved themselves to be resilient, flexible and dedicated to ensuring the delivery of public services."
"The overall outcome is a robust business performance in 2020, ahead of the expectations we had at the beginning of the year."
Serco's gesture to return furlough money follows plans among retailers to return more than £2bn in business rates relief.
Serco said that in addition to the money it was returning to the UK government, it would also hand back support it received in the US and Canada.
https://news.google.com/__i/rss/rd/articles/CBMic2h0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2NvdmlkLTE5LXRlc3QtYW5kLXRyYWNlLWZpcm0tc2VyY28tdG8tcmVwYXktZnVybG91Z2gtY2FzaC1hbmQtYXdhcmQtc3RhZmYtYm9udXMtMTIxNjUxNDbSAXdodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9hbXAvY292aWQtMTktdGVzdC1hbmQtdHJhY2UtZmlybS1zZXJjby10by1yZXBheS1mdXJsb3VnaC1jYXNoLWFuZC1hd2FyZC1zdGFmZi1ib251cy0xMjE2NTE0Ng?oc=5
2020-12-17 08:03:45Z
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