Serco makes exceptional gain of 51m pounds from DMS Maritime valuation

Serco Group, the FTSE 100 international services company, said Wednesday that the required valuations for its recent purchase of DMS Maritime have been completed and are expected to result in a non-cash exceptional gain of 51m pounds.

Serco Group, the FTSE 100 international services company, said Wednesday that the required valuations for its recent purchase of DMS Maritime have been completed and are expected to result in a non-cash exceptional gain of 51m pounds.

This gain will appear in the company's 2012 results.

The overall balance sheet effect of the acquisition is now expected to result in recognition of £120m of net assets, although this is subject to final confirmation.

Christopher Hyman, Chief Executive of Serco, said: "Our original shareholding in DMS Maritime was made 15 years ago when we first established the joint venture to provide a complex range of harbour and offshore services for the Royal Australian Navy. DMS Maritime is a high quality business that shares Serco's commitment to customer focus, has grown well and will be further enhanced under our full ownership.

"We believe that it will benefit from the continuing development of our defence business in the region from a base support services provider to a complex services integrator, and from the significant opportunities that we see in the marine systems integration and services market - both for government and private sector customers."

The share price rose 0.26% to 576p by 09:30 on Wednesday.

NR

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022