International outsourcing firm Serco said it was on track for 2012 but expects revenues in the first half to take a hit from tough conditions in America.
In a statement ahead of the firm's half year end, Serco said it expected strong total revenue growth in 2012, including good organic growth.
But it forecast that adjusted operating margins would be flat in the first half compared to the corresponding period in 2011.
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
Serco noted further strong growth in AMEAA, an improving outlook in the UK, but said conditions in the US federal market remained very tough for its Americas division.
"Accordingly, for the first half of the year, we expect a small reduction in the group's organic revenue," it said.
"Acquisitions will contribute growth of approximately 6% to the group's total revenue," it added.
The firm said its financial performance would be weighted to the second half of the year when it expected a strong result.
This would come through new contract awards recently secured, the successful conclusion of a change programme, and the benefit of recent acquisitions, it said.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
