Serco sells off transport maintenance and technology units

27th Nov 2013 07:09

FTSE 250 outsourcing company Serco has completed the sale of its London streets maintenance and UK transport technology business to Cubic Corporation.The disposal, for £43.5m, is in line with the group's "proactive portfolio management involving an ongoing assessment of operations against their fit to our strategy".The sold businesses provide maintenance for transport infrastructure such as traffic signals and CCTV systems in London as well as the design, installation and maintenance of UK transportation management technology. The company admitted that under its continued ownership, future growth and profitability would have been "restricted" due to limit synergies with its other arms.This news comes just five days after the resignation of Jeremy Stafford, Serco's Chief Executive of UK & Europe, as the company attempts to "refresh" its relationship with UK government following a number of scandals. He will be replaced by the Chief Operating Officer of the region, Andrew White, on an interim basis.Just last month, Serco's group Chief Executive Chris Hyman also stepped down. He was replaced by Ed Casey, who had led Serco's Americas division since 2005.Speaking about Wednesday's disposal, Casey said: "In the UK, these particular maintenance and technology operations had become non-core to the future development of our transportation strategy.  "We remain committed to serving and developing our core transportation operations in the UK and around the world in areas such as light and heavy rail, ferry services and cycle hire."BC