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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Why all eyes will be on US inflation data this week
Inflation

Why all eyes will be on US inflation data this week

As the world comes out of lockdown and demand for goods and services rises, attention will shift to inflation and what it means for interest rates. Th…
12 Apr 2021