Serco CFO hands in resignation in wake of emergency fundraising

30th Apr 2014 20:33

Serco, the embattled government outsourcing services provider, has received the resignation of its long-standing Chief Financial Officer Andrew Jenner as it announced an emergency fundraising to bolster its balance sheet. Jenner, 44 years old, has been in the role since 2002 and will remain as CFO until there a successor is appointed.The company announced after London markets closed that it planned to raise around £170m as year-to-date performance was weaker than expected, and the resulting shortfall made original targets for the second half of 2014 even more challenging, and secondly it has required the board to take a more cautious view of projections. Rupert Soames, who takes up the role of Group Chief Executive Officer on May 1st said: "The judgement of the likely out-turn for the year has therefore been materially reduced, with a consequent impact on our leverage ratios, which, without remedial action, would be uncomfortably close to their limits at the half-year. The judgement of the likely out-turn for the year has therefore been materially reduced, with a consequent impact on our leverage ratios, which, without remedial action, would be uncomfortably close to their limits at the half-year."Commenting on Jenner's resignation, Chairman Alastair Lyons said: "Over the 17 years he has been with Serco, Andrew Jenner has made a significant contribution through his personal commitment to the Company, not least by his agreement to stay on until there is a successor. He will take our best wishes with him."Serco will also see a reshuffle of its board when Rupert Soames begins as Group Chief Executive (CEO) on May 1st, when acting CEO Ed Casey will move to Group Chief Operating Officer. The company said the new role for Casey, who formerly led Serco's Americas division since 2005, "will ensure continuity of operational leadership and will enable (Soames) to spend the time he needs to familiarise himself with the business". OH