I get the impression that the OP doesn't think it is reasonable for public money to be paid to a private company which might make a profit on other activities.For the last 18 months, Serco will have been on a form of contract that enabled them to make a very small % profit on costs. In that time they might have earned a few hundred thousand pounds profit (complete guess based on 2% of costs). That is set against tens of millions of losses for the previous years.