Supporting unemployed people looking for work has given a £500m boost to Serco's bottom line. The international service company made the surprise announcement last week that it had signed three Flexible New Deal contracts for jobseekers with the Department for Work and Pensions. Just days after revealing a 33% rise in profits, the group confirmed the five-year contracts for three regions in Wales, the West Midlands and Greater Manchester. Depending on how many people can be found employment in what is regarded as a tough jobs market, the contracts will net up to £500m when they start this October. Serco will work with local providers which already have a track record of placing people in jobs. Those providers will then share part of the cash from the Government. Christopher Hyman, chief executive of Serco Group, said: ‘We are delighted to have signed these contracts to deliver innovative new welfare-to-work services, and to assist individuals in developing new skills and returning to work. ‘This is a significant new market for Serco, and we see further opportunities to apply our approach to additional contracts under the Flexible New Deal and to other areas of benefit provision, both in the UK and overseas.'