Mikhail Liebenstein Posted November 1, 2010 Share Posted November 1, 2010 Now here is one business that could be on for a tough time. http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted November 1, 2010 Share Posted November 1, 2010 Now here is one business that could be on for a tough time. http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that. Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted November 1, 2010 Share Posted November 1, 2010 Now here is one business that could be on for a tough time. http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that. Reading the article, seemed like a thinly veiled and nasty threat to its suppliers. Quote Link to comment Share on other sites More sharing options...
200p Posted November 1, 2010 Share Posted November 1, 2010 This one is ripening soon. Long way to fall. http://bigcharts.marketwatch.com/charts/big.chart?symb=uk%3Asrp&compidx=aaaaa%3A0&ma=1&maval=200%2C50&uf=0&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=122638&style=320&time=20&freq=2&comp=NO%5FSYMBOL%5FCHOSEN&nosettings=1&rand=2333&mocktick=1 Quote Link to comment Share on other sites More sharing options...
SNACR Posted November 1, 2010 Share Posted November 1, 2010 I would have to admit that this sort of behaviour is endemic in the retail sector. Quote Link to comment Share on other sites More sharing options...
Protect Rural England Posted November 1, 2010 Share Posted November 1, 2010 Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors. Thought you were referring to a girl I once knew Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted November 1, 2010 Author Share Posted November 1, 2010 Reading the article, seemed like a thinly veiled and nasty threat to its suppliers. Also a suggestion that it was equivalent to soliciting bribes in the comments, which is would say is a fair point. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted November 1, 2010 Share Posted November 1, 2010 Seems a very strange thing to have done. A problem of liquidity? Quote Link to comment Share on other sites More sharing options...
porca misèria Posted November 2, 2010 Share Posted November 2, 2010 Now here is one business that could be on for a tough time. http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that. My experience of Serco is that they operate on much bigger margins than they tell you. They'll lie to both clients and employees in pursuit of those margins. Example: contracting a software developer to JRC in Italy, about 1993. They paid him £14k but specified in the contract that they were paying £17k. Came to light 'cos the programmer and the client touched upon the subject in casual conversation. I could tell of much bigger discrepancies than that, if I were to recall my own experience. Quote Link to comment Share on other sites More sharing options...
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