Serco Group plc
Pre-close Trading Update
2 December 2005
Ahead of its financial year-end on 31 December 2005 and its pre-close meetings
with analysts, Serco Group plc ('Serco') today releases the following update on
current trading:
During the second half of the year, Serco has continued to generate strong
organic growth and benefited from the contributions and synergies of recent
acquisitions. As a consequence, Serco is on track to deliver its expectations
for 2005.
Since 1 July, Serco has won or been appointed preferred bidder for contracts
valued at approximately £1.2bn. These include large and complex contracts such
as the Atomic Weapons Establishment extension, Scottish electronic monitoring
and the Docklands Light Railway rebid. Serco has also won strategically
significant contracts which open up new markets for growth, such as the
Cyclamen programme in homeland defence. Serco continues to win many other
contracts, examples of which are included in a separate news update released
today, available from www.serco.com.
Serco Solutions and Serco Inc have delivered pleasing performances in the
second half and are trading in line with our expectations. Serco Solutions'
revenues have shown good growth compared with the first half of 2005 and the
new skills brought to Serco are bringing benefits, including winning the Small
Business Service contract and securing membership of a consortium bidding for
the e-Borders programme. Serco Inc continues to receive a strong flow of task
orders, as well as expanding or extending existing contracts. In addition, our
increased scale and capability in North America are allowing us to bid new
opportunities which previously could not have been pursued.
Overall, market conditions remain strongly in our favour. We have a significant
bid pipeline and a wide range of further opportunities to grow revenues and to
increase margins. We are confident of delivering double-digit growth for the
foreseeable future.
Ends
For further information, contact: +44 (0) 1256 745 900
Richard Hollins, Head of Investor Relations
Graham Capper, Head of Media and Public Relations
Dominic Cheetham, Director of Corporate Communications
Notes to editors:
Serco is a leading international service company, operating in a broad range of
sectors including home affairs, defence, aerospace, transport, science, IT
services, education, local government and health. More information can be found
at www.serco.com.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.