AdSlot 1 (Leaderboard)

Serco CFO’s departure confirmed

SERCO CFO Andrew Jenner has announced his departure from the logistics business, after weeks of speculation about his future.

Jenner, who was appointed CFO in 2002, will step down once a successor is in place.

Serco 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.”

The move comes at a time of great change, and many headlines, for Serco. It posted a profit warning yesterday in its interim management statement, with newly-appointed CEO Rupert Soames raising concern that the impact on its leverage ratios would place it “uncomfortably close” to its limits at half-year without remedial action.

It intends to place 9.99% of shares to raise capital. Soames is also looking to undertake a strategic review of the business, which will include assessing its markets and positioning; organisation and structure; and the future shape of its balance sheet. He expects this to take nine months. Ed Casey, who has served as acting chief executive, is named group COO.

Other issues for the security specialist have included the revelation that revealed it was overcharging the government, and two earlier profit warnings, during the past six months. Serco has also seen its share price fall by about 30% in the last year.

Jenner joined the company in 1996 as group financial controller having previously worked at Unilever and Deloitte. He became corporate finance director with additional responsibility for treasury activities in 1999 before joining the board in 2002.

Former CEO Chris Hyman resigned in November following the discovery that Serco had charged the government for electronic tagging of offenders who were already in prison, or in some cases, had died. The company agreed to repay £68.5m to the government following the details being brought to light.

Related reading

/IMG/387/220387/business-handshake
/IMG/895/121895/rolls-royce-logo
/IMG/589/211589/mining-law2
/IMG/369/214369/tesco669