News

Serco Group Reports Increased Profits and Revenue in First Half

1 Mins read

Corrections & Amplifications

This headline was corrected at 0623 GMT to reflect the company’s correct first half net profit of GBP147.6M. Not GBP107.1M as previously reported.

Corrections & Amplifications

This headline was corrected at 0624 GMT to reflect the company’s correct first half operating profit of GBP187.7M. Not GBP147.9M as previously reported.

Corrections & Amplifications

This headline was corrected at 0625 GMT to reflect the company’s correct first half net profit of GBP176.7M. Not GBP136.9M as previously reported.


Serco Group Reports Increased Profits and Revenue in First Half

By Joe Hoppe

Serco Group, a leading U.K. outsourcing company, announced significant growth in pretax profit and revenue for the first half of the year. Despite a decline in coronavirus-related work, the company experienced a surge in demand across other services, thereby boosting its financial performance.

During the first six months, Serco Group achieved a pretax profit of £176.7 million, compared to £136.9 million in the previous year. Furthermore, underlying operating profit, a key metric that excludes exceptional and one-off items, rose to £147.9 million from £129.5 million.

The company’s robust revenue for the period stood at £2.47 billion, an increase from £2.18 billion the previous year. This growth was driven by a combination of organic acquisition and currency-related factors, compensating for the decrease in coronavirus-related work. Strong demand for immigration services, defense, and case management played a vital role in offsetting the decline.

As a result of its notable performance, Serco Group declared an interim dividend of 1.14 pence per share, representing an increase from the previous dividend of 0.94 pence.

Looking ahead, the company raised its free cash flow guidance for the year, now expecting it to reach approximately £150 million, up from the previous estimate of £130 million. Adjusted net debt is projected to be around £170 million, compared to the previous figure of £190 million.

Despite the challenges posed by the pandemic, Serco Group maintains its 2023 guidance, forecasting revenue of at least £4.8 billion and underlying operating profit of approximately £245 million.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

+ 43 = 44