Serco falls as directors sell stock

SERCO, the facility management group, dismissed market speculation that the company may issue a profits warning in December, as its shares slumped a further 6 per cent. The fall in Serco's share price from a peak of 1,447p in July accelerated after three directors sold 240,000 shares on 30 September.

Asked why directors had sold shares, the finance director, Kevin Beeston, said it was in line with past practice. "Since the management buyout 11 years ago, the directors have regularly sold shares after the publication of results. The amounts sold are small in relation to the overall holding of each director." Mr Beeston dismissed reports of a profit warning, saying: "Current trading is in line with expectations." Serco shares ended down 50p at 782.5p.