Outsourcing giant Serco is to take a 17 million pound charge after the company recorded three UK loss-making ventures in the health care sector.

The announcement comes as the company is stripped of its electronic tagging contract with the Ministry of Justice, after allegations of fraud, which resulted in a dip in the company’s share price.

The announcement contrasts with the 4.9 billion pound revenue that the company made in 2012, with more than half of the figure coming from UK projects.

Serco group CEO Chris Hyman has since stepped down, with the company looking to regain trust with the UK government.

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