The outsourcing firm Serco has reported a 21% rise in its profits in the first six months of the current year despite of the public sector cuts. According to analysts, the major reason behind this profit rise is the strong domestic and international economic growth.
The company runs train services as well as prisons in Australian and UK; it has stepped in to its latest bi-cycle hire scheme in London for last few times.
The new scheme has raised the company's revenue by almost 10% to 101.4 million pounds of pre-tax profits. Despite of the world wide public sector spending cuts the company has done extremely well and it has said that it had equipped to the situation.
The chief executive of Serco, Christopher Hyman has said that many of the government and commercial customers of the company were seeking to reduce the costs.
As the government is aiming to cut the budget deficit by raising spending cuts, the pressure will build on the sectors like health and prisons to cut their spending cuts. Despite of this fact the company is aiming to bid for the government contracts of the prison and health sector.