Serco close to flogging UK defence nuke tech biz

IT outsourcing monster Serco is locked in talks with engineering consultancy and project management services outfit Amec to sell its Technical Consulting Services biz.

The unit provides consulting and project services including IT to the UK civil and defence nuclear markets, turning over in the region of £70m last year.

Cost-cutting Serco, which recently claimed the UK economy is starting to show some signs of life, told the London Stock Exchange this morning of the "potential disposal".

"There is no certainty that a transaction will proceed. A further announcement will be made in due course," said Serco.

Only last week, in a trading update, Serco said sales for the first half of calendar 2012 are expected to rise 6 per cent, despite the challenging conditions in the economies of the UK and US.

The IT outsourcing firm is axing some 500 jobs due to "streamlining the management" of the UK operation in a move that will also impact back office functions. ®