Latest:
Mouchel to buy Serco's council arm
16:41 08 Jan 2003
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Mouchel is reported to be close to completing a deal to acquire
Serco Property & Design (SPD), which has property contracts
with three south London boroughs.
Serco decided that the business was non-core and had offered it to several interested parties. No fee is involved as the business was losing £500,000 a year. A source said: "Serco will take the half-million hit with Mouchel hoping that there won't be any further financial problems."
The acquisition will fit neatly with Mouchel's existing portfolio as it has 300 staff doing similar work in Hertfordshire, Kent, Essex and North Yorkshire.
SPD's 100 employees are divided between bases in Teddington and Merton. A source said on Monday: "SPD undertakes small projects, maintenance and refurbishment for three London councils: Kingston, Richmond and Merton. The business was formed when the councils decided to outsource work with in-house staff being TUPEd across to the new entity."
Typically, SPD's income is based on 8% of project value, although with small works under £10,000 the rate would be 15% to 18%. However, despite working co-operatively with the clients, SPD couldn't make the contracts pay.
Serco decided that the business was non-core and had offered it to several interested parties. No fee is involved as the business was losing £500,000 a year. A source said: "Serco will take the half-million hit with Mouchel hoping that there won't be any further financial problems."
The acquisition will fit neatly with Mouchel's existing portfolio as it has 300 staff doing similar work in Hertfordshire, Kent, Essex and North Yorkshire.
SPD's 100 employees are divided between bases in Teddington and Merton. A source said on Monday: "SPD undertakes small projects, maintenance and refurbishment for three London councils: Kingston, Richmond and Merton. The business was formed when the councils decided to outsource work with in-house staff being TUPEd across to the new entity."
Typically, SPD's income is based on 8% of project value, although with small works under £10,000 the rate would be 15% to 18%. However, despite working co-operatively with the clients, SPD couldn't make the contracts pay.
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