Nuclear security/ UK

Serco drops 5% on worries about atomic contract

Outsourcing group Serco has lost around 5% on concerns about the future of its nuclear warhead contract.

Its shares have fallen 10.1p to 172.2p after a report that the government may scrap the contract, where Serco is part of a consortium running the service. Analysts at Liberum said:

The Sunday Times reports [£] that the government may scrap the Atomic Weapons Establishment (AWE) contract, amid ‘spiralling costs and overruns’. It is expected that this will not happen until after the election. Serco is part of a three way joint venture which covers the whole life cycle of nuclear warheads from design to decommissioning.