Hi all,

I am a shareholder in SRP and recently read the announcement regarding the government overcharging.

I think Serco has around £4.9 billion revenue, of which half comes from the UK government, so lets say approximately £2.5 billion from the government. The approximate amount overcharged is estimated in the low tens of millions. This is about 0.6% of the total amount paid by the Government to SRP each year.

From a Government standpoint, once the audit's have been conducted and the controls around this have been improved, it will be pretty much back to normal.

Having bought in the final week of last month, my shares are still trading at a profit however I saw them drop over 8% on Thursday. I don't think this announcement is a reason to sell though.

That's my take on things, what do others think?

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