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.

By MoneyWeek

published 20 February 2013

in Features

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.

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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.