Shares in focus: Can Serco recover from years of hubris?

New boss Rupert Soames has been tasked with turning outsourcer Serco around. Can he do it, and should you buy the shares? Phil Oakley investigates.

The outsourcer is overpriced and its profits are falling avoid, says Phil Oakley.

Hindsight is a wonderful thing. But the experience of UK outsourcing company Serco, over the last few years, looks like a classic case of hubris.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.