Exposure to international growth markets lifts revenue at Serco

Revenue rose 5.7 per cent to 4.9bn pounds in the year ended December 31st at FTSE 100-listed British outsourcing group Serco, underpinned by a strong performance in international markets.

Revenue rose 5.7 per cent to 4.9bn pounds in the year ended December 31st at FTSE 100-listed British outsourcing group Serco, underpinned by a strong performance in international markets.

In its annual results, issued on Tuesday, the group reported an adjusted operating profit of £214.8m, up 8.5% from £290.1m a year earlier.

Adjusted profit before tax was up 6.1% to £278.1m, while pre-tax profit was up 26.7% to £302m.

Adjusted earnings per share rose 7.5% year-on-year to 42.55p and dividend per share rose 20% to 10.10p.

The group said that it had benefited from greater exposure to international growth markets and sectors. Organic growth of 3.3% was recorded with "excellent performances" in operations in AMEAA (Australasia the Middle East, Asia and Africa), which were up 22%, and Global Services, which was up 12%.

Christopher Hyman, Chief Executive Officer of Serco Group, said: "To continue developing our business we are providing more support to our existing customers, offering more to emerging markets and improving our ability to provide more complex services. This has resulted in a strong year for us in 2012 despite some very real challenges; we won more work than ever, we entered new markets, we built more capabilities and we established a global BPO business.

"Our unique breadth and depth leaves us strongly positioned to meet the growing demand from around the world for our skills and services. This confidence in our business prospects underpins our new dividend policy and commitment to a higher payout ratio over the coming years."

Serco's shares were up 10.28% to 638.50p at 08:47 on Tuesday.

MF

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