April 30, 2014 / 6:11 PM / 3 years ago

Serco to raise cash as profit set to plunge

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April 30 (Reuters) - British outsourcing firm Serco said it planned to raise 170 million pounds ($287 million) in emergency cash after revealing the full extent of its problems in its latest profit downgrade and the departure of its finance director.

Serco, which was rocked by a scandal last year in which it was found to have overcharged the British government on a contract to tag criminals, said its 2014 adjusted operating profit would now be no less than 170 million pounds.

That compared with an earlier forecast of 220 to 250 million pounds. The group had also warned on profits in January.

In order to shore up its finances, it will go ahead with a placing of 9.9 percent of its stock to raise around 170 million pounds. In addition, the group said Andrew Jenner, finance director since 2002, had advised the board that he planned to step down. He will stay on until a successor is found.

$1 = 0.5922 British Pounds Reporting by Kate Holton; Editing by Neil Maidment

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