Serco sees second-half rebound
Serco has delivered the anticipated pick-up in performance in the second half and is on track to meet full year expectations.
Serco has delivered the anticipated pick-up in performance in the second half and is on track to meet full year expectations.
The outsourcing specialist expects conditions to remain challenging in the US but further improvement is expected in its UK markets, while strong performances from its Africa, Middle East, Asia and Australia (AMEAA) and Global Services Business Process Outsourcing (BPO) operations are anticipated to continue.
The organic revenue decline of 2% in the first half of the year is tipped to improve to strong growth in the second half, reflecting new contract awards flowing through to revenues. Full-year operating margin should be similar to that achieved in 2011, as revenue growth picks up and underlying efficiency improvements kick in.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
As previously communicated, free cash generation is also expected to be weighted to the second half. A higher level of working capital investment related to the growth in our BPO-related contracts is still anticipated.
JH
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published