Solid Serco excels

published 28 February 2012

Outsourcing giant Serco is becoming more international in its outlook with 44% of group revenue now generated outside of the UK.

The group said 2011 was a year of "solid operational performance and contract awards across the portfolio", reflected in a 7.4% increase in revenue to £4,646m from £4,327m in 2011. The organic revenue growth rate was 3.5%. The market had been expecting a revenue figure of £4,622m.

Adjusted profit before tax rose 13.4% to £262.2m from £231.3m in 2010, ahead of market expectations of £251.7m, while adjusted earnings per share also came in above expectations (38.15p) at 39.59p, up 14.1% on 2010's 34.69p.

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The full year dividend has been increased more or less in line with earnings to 8.40p from 7.35p in 2010. The market consensus forecast was for a dividend of 8.18p.

More to follow ...