Serco Group (SRP)

Sector:

Support

Index:

FTSE 250

156.50p
   
  • Change Today:
      0.50p
  • 52 Week High: 193.10p
  • 52 Week Low: 154.40p
  • Currency: UK Pounds
  • Shares Issued: 1,024.81m
  • Volume: 84,386
  • Market Cap: £1,603.83m
  • RiskGrade: 174
  • Beta: 1.04

Serco points to higher profits in 2024 after strong second half

By Benjamin Chiou

Date: Thursday 14 Dec 2023

LONDON (ShareCast) - (Sharecast News) - Public services provider Serco has announced that 2023 revenues and profits will be in line with guidance as it pointed to further bottom-line growth in the coming financial year.
In a trading update ahead of the end of year, the company said revenues should be "at least £4.8bn" iin 2023, with reported growth of around 7% and organic revenue growth of 4% - in line with upgraded guidance given alongside the half-year results in August.

"Revenue has increased organically as growth in the immigration and defence sectors, areas we have invested in significantly in recent years, more than offset Covid-related work," the company said.

Underlying operating profit should be around £245m, representing a 3% increase on last year, as operational improvements and the ramp-up of new business signed in previous years offsets negative impacts of Covid-related work and lower volumes in Asia Pacific.

The company's financial position, however, is tipped to be better than guidance, with free cash flow £20m ahead of estimates at £170m, compared with £159m in 2022, and adjusted net debt £10m lower at £160m, down from £204m previously. This leaves financial leverage - in net debt-to-EBITDA terms - at just 0.7 times, down from 0.9 times at the half-year stage.

In a separate statement, Serco also announced that it is acquiring a public-facing immigration services provider in Germany, European Homecare, for £34m. The deal is hoped to "increase the reach and capability of Serco's international immigration services platform which has substantial operations in the UK, Australia and Europe", it said.

Commenting on the trading update, chief executive Mark Irwin said: "Our strong focus on execution has delivered good performance in the second half, resulting in full year outcomes that are better than those expected when we initially laid out guidance.

"We expect to enter 2024 with a strong pipeline of new business opportunities and a robust balance sheet."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Serco Market Data

Currency UK Pounds
Share Price 156.50p
Change Today 0.50p
% Change 0.32 %
52 Week High 193.10p
52 Week Low 154.40p
Volume 84,386
Shares Issued 1,024.81m
Market Cap £1,603.83m
Beta 1.04
RiskGrade 174

Serco Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
58.03% below the market average58.03% below the market average58.03% below the market average58.03% below the market average58.03% below the market average
23.6% below the sector average23.6% below the sector average23.6% below the sector average23.6% below the sector average23.6% below the sector average
Price Trend
14.1% below the market average14.1% below the market average14.1% below the market average14.1% below the market average14.1% below the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Income
12.04% below the market average12.04% below the market average12.04% below the market average12.04% below the market average12.04% below the market average
8.47% above the sector average8.47% above the sector average8.47% above the sector average8.47% above the sector average8.47% above the sector average
Growth
3.34% above the market average3.34% above the market average3.34% above the market average3.34% above the market average3.34% above the market average
3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average

What The Brokers Say

Strong Buy 6
Buy 3
Neutral 2
Sell 0
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Serco Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Aug-24 18-Apr-24
Paid 04-Oct-24 10-May-24
Amount 1.34p 2.27p

Trades for 22-Nov-2024

Time Volume / Share Price
08:30 1,271 @ 156.50p
08:30 2,529 @ 156.50p
08:30 77 @ 156.50p
08:27 393 @ 156.50p
08:27 344 @ 156.50p

Serco Key Personnel

CEO Mark Irwin

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