Final Results

Serco Group PLC
20 February 2001


Tuesday 20 February 2001
Tuesday 20 February 2001
Please see below


                            Serco Group plc
              Preliminary results for the year ended 31 December 2000


                                     2000           1999

Turnover                           £967.0m        £807.5m    up 19.7%
Profit before tax - pre FRS 10      £37.7m         £31.4m    up 20.0%
Earnings per share - pre FRS 10      6.78p         5.63p*    up 20.4%
Dividend per share                   1.63p         1.42p*    up 14.4%

Including joint ventures
*
  Restated to reflect a share capitalisation of five shares for every one
held approved by shareholders on 5 April 2000



-     Strong growth maintained: turnover up 19.7%, pre-tax profit up 20.0%,     
      earnings per share up 20.4%.

-     Contract renewals maintained: successful rebids continued at over 90%.

-     UK: major partnership begun with National Crime Squad. Serco are in
      advanced negotiations for the Highways Agency's new national Traffic      
      Control Centre PFI.

-     AWE: Atomic Weapons Establishment successfully phased-in, Nuclear
      Installations Inspectorate and Environment Agency praised our safety and
      environmental performance at AWE - contract extended to cover support for
      weapons convoys.  Final negotiations for PPP to extend the contract from  
      10 to 25 years and raise £400 million private finance for the development 
      of the AWE.

-     NATS: Serco included in final shortlist of three for National Air
      Traffic Services public-private partnership.

-     Continental Europe: technical services and facilities management
      contract won at Forsmark nuclear power station in Sweden. New contracts   
      with CERN nuclear research facility and European Space Agency.

-     Middle East: technical services contracts renewed at Dubai, Ras Al
      Khaimah and Sharjah International Airports, new air traffic management    
      system phased-in at Dubai.

-     North America: Federal Aviation Administration air traffic control
      contracts increased to 56 towers, giving scope for further expansion.     
      Joint working group established with Lockheed Martin.

-     Asia Pacific: In Australia Serco now provides 50% of all garrison
      support services.  Acquisition completed in 2001 of The Hiser Group, one  
      of the world's top three consultancies in IT usability.


Richard White, Executive Chairman, said:

'Our bids for initiatives such as the UK's National Air Traffic Services PPP,
the proposed Atomic Weapons Establishment PPP and the Future Strategic Tanker
Aircraft PFI programme indicate the scale of our ambition and capabilities. In
pursuing opportunities on this scale we will not forget that sustainable long
term growth depends on consistently excellent performance and organic growth
across the whole spectrum of our contracts and businesses: these all continue
to have excellent prospects.'

                                   - Ends -

The Serco Group plc Annual Review and Accounts 2000 is available from today on
our internet site at www.serco.com.



Notes to Editors

Serco Group plc is an international provider of management services to
government and industry, covering a comprehensive range of engineering and
support activities across many applications.



For further information please contact Serco Group plc:  T: [phone]

Richard White     Executive Chairman       Kevin Beeston  Chief Executive
Christopher Hyman Finance Director


                               Serco Group plc
                 Preliminary results for the year ended 31 December 2000


2000 was another year of strong performance. We maintained our record of
consistent growth in sales and profits, renewed and expanded our base of
existing contracts, and applied our managerial and technological capabilities
to win new contracts.



Financial Review

Sales grew 19.7% to £967.0 million. Pre-tax profits rose 20.0% to £37.7
million before goodwill amortisation (FRS 10). Earnings per share rose 20.4%
before FRS 10. Operating cash flow performance remained strong at £45.5
million. The recommended final dividend of 1.13p per share makes a total of
1.63p for the year - an increase of 14.4% over 1999.



Board changes

There were a number of changes to the Serco Board during the year. In March
2000 Gerry Rodgers retired, having successfully led our Y2K project; we are
grateful for his contribution to the business over 30 years. In April Ralph
Hodge CBE joined as our third non-executive director. He is a former chief
executive of ICI Chemicals and Polymers and chaired the committee that created
the ISO 9000 quality standard. Gary Sturgess stood down in December after six
years' valued contribution as a non-executive director, to join the company
full-time as group policy adviser. At the same time, Betsy Bernard joined us
as a non-executive director; she was until recently executive vice president
of National Mass Markets, part of Qwest Communications International, and
brings us valuable technology experience - particularly in the North American
market.



Group strategy

Successfully maintaining strong growth in the number, size and complexity of
our contracts is not simply a matter of winning bids. We need to secure the
necessary depth of management capabilities; share best practice to make the
most of the experience we gain; consolidate our growth by retaining contracts
as they come up for renewal; and earn our place in the communities we serve by
showing social and environmental responsibility.



Our success depends entirely on the performance of Serco's people at all
levels - we thank them all for their contribution. We will continue to invest
in them, empower them with the knowledge, skills and technology that enable
them to excel, and develop a pipeline of appropriately skilled managers. The
Serco Best Practice Centre is becoming increasingly effective in identifying
excellence and making it accessible to contract managers and their teams
worldwide. We are successfully maintaining our contract renewal rate at over
90%. And, as a growing number of our customers expect evidence of social and
environmental responsibility, we are currently conducting an audit of our
performance in these areas.



Serco is growing quickly, but judiciously. We are building organically on a
solid foundation of existing contracts; and the sheer scale of new
opportunities available to us around the world means that we can be selective
about where and how we grow. We are maintaining our emphasis on winning
contracts that play to our strengths in management and technology - focusing
on sectors such as transport, defence, and the justice, education and science
activities of central and local government, where there are substantial
opportunities to add real value.



Our track record of successful Private Finance Initiatives (PFIs) and Public
Private Partnerships (PPPs) in the UK will prove a competitive asset as
similar opportunities emerge in the Asia Pacific region and Continental
Europe. We also continue to pursue larger, more complex opportunities in North
America, in partnership with major US corporations.



Our bids for initiatives such as the UK's National Air Traffic Services PPP,
the proposed Atomic Weapons Establishment PPP and the Future Strategic Tanker
Aircraft PFI programme indicate the scale of our ambition and capabilities. In
pursuing opportunities on this scale we will not forget that sustainable long
term growth depends on consistently excellent performance and organic growth
across the whole spectrum of our contracts and businesses: these all continue
to have excellent prospects.



Business Review

Our strong performance in 2000 reflected successes in all regions. We retained
and extended much of our existing business while winning new contracts - many
of which allow us to demonstrate new levels of management and technical
capability.



In the UK we began four very large contracts: the Atomic Weapons Establishment
(AWE), the Joint Services Command and Staff College, an infrastructure
maintenance contract for Railtrack and an information management and
communication partnership with the National Crime Squad.



In continental Europe our German, Italian and Belgian businesses are making an
increasingly valuable contribution. We won significant contracts in Sweden,
including technical services at the Forsmark nuclear power station, and from
CERN, the European Organisation for nuclear research in Switzerland. We also
gained important new projects from the European Space Agency.



In the Middle East we successfully renewed the aeronautical technical services
contracts at Dubai, Ras Al Khaimah and Sharjah International Airports, and
phased-in a new air traffic management system in Dubai.



We had a good year in North America. In rebidding for air traffic control
(ATC) contracts from the Federal Aviation Administration (FAA) we increased
the number of towers we operate, giving us scope for further expansion. New
opportunities have opened up for our relationship with Lockheed Martin,
enabling us to begin negotiations on a private finance initiative (PFI)
project to provide an astrobiology laboratory.



In Asia Pacific our principal successes were in defence - in Australia, where
we now provide 50% of all garrison support services, and in New Zealand, where
we continued to win significant contracts.



Public private partnerships (PPPs) and PFIs remain a significant source of
opportunity for us. In the UK, at the Joint Services Command and Staff
College, where Serco has an operating contract worth more than £200 million
over 27 years, our joint venture completed the £90 million facility and we
recruited 300 staff to operate it. Dovegate Prison, Norfolk and Norwich
Hospital and Wishaw General Hospital are on schedule for completion this year.
We are in advanced negotiations for the Highways Agency's new national Traffic
Control Centre PFI.



At AWE we are currently discussing a PPP which would extend our 10-year
contract by a further 15 years and enable our consortium to raise private
finance for a series of major capital works. We have been included on the
final shortlist of three for the National Air Traffic Services PPP.



We have successfully completed the first selection stage for the UK's Future
Strategic Tanker Aircraft programme; and we are investigating the
opportunities for a similar programme due to be announced in Australia - the
fact that the Australian military are developing PFI projects augurs well for
the spread of this procurement method and for our own future growth prospects.
We are pursuing our first opportunities in Japan; and we have formally agreed
a joint working group with Lockheed Martin in the US to identify further
projects beyond our astrobiology laboratory PFI proposal.



National, regional and local government

Our aim in this market is to maintain a solid foundation through rebids and
extensions, while winning increasingly critical, complex projects with
existing and new customers.



In the UK we won and successfully began a major partnership with the National
Crime Squad. Under a 10-year contract, valued at over £65 million, we will
develop its information management and communications strategy and provide
comprehensive and highly secure technical resources ranging from the provision
of data centres to the storage and tracking of vital evidence.



Justice has become an increasingly important sector for us. During the year we
successfully rebid a 10-year contract for management and operation of
Doncaster Prison in Yorkshire. In 2001 we begin operation of Dovegate Prison
in Staffordshire under a PFI contract.



We won our largest Swedish contract to date, for technical services and
facilities management at Forsmark nuclear power station. This covers a wide
range of activities from decontamination services to managing almost 700
accommodation units and we have already broadened its scope.



In Germany we won a further extension of the contracts we have held since 1984
with the Federal Employment Office. Under these contracts we provide further
education and retraining for over 1,000 job-seekers a day at 13 training
centres.



In the Netherlands we extended our mainframe computer support contract with
the European Patent Office. We won our second contract with the Dutch
government, to manage the Housing Ministry's telecommunications infrastructure
at its three main sites in The Hague. Our IT contracts with the European
Commission were extended. These cover primarily PC user support to over 15,000
staff in some 30 buildings in Brussels and Luxembourg, and continue to achieve
good organic growth.



We began a new contract for CONSOB, the National Commission that oversees the
Italian Stock Exchange and public companies: we are supporting its entire IT
infrastructure for 450 employees at two offices in Rome and one in Milan.



We are actively pursuing opportunities in the UK education market, where we
see significant future growth potential. In December 2000 we acquired Quality
Assurance Associates, which is one of the UK's primary providers of school
inspection services and head teacher leadership training. The acquisition, for
£2.6 million, complements our change management and process improvement
expertise and will support our proposals for partnerships with local education
authorities.



In 1995 we took over the direct labour organisation of Winchester City Council
for five years. The success of the contract, and the strong partnership we
have built with the council, won us a 10-year renewal beginning in April 2001.



In the US the outsourcing of state government services is gathering momentum.
We made further progress by winning the vehicle fleet maintenance contract for
Seminole County in Florida. This includes police and county vehicles and the
firefighting fleet at Sanford Airport.



In Asia Pacific we renewed our housing management contract with JTC
Corporation in Singapore; and renewed and extended contracts to maintain
nearly 300 parks and open spaces in Manukau City, New Zealand. In Australia we
won a five-year contract employing 60 staff to manage and operate the
Transinfo public transport information service jointly funded by Queensland
Transport, Queensland Rail and Brisbane City Council.



We are building increasing strength in leisure centre management. In the UK we
won a 10-year contract to manage the Manchester Aquatics Centre. Built to host
the Commonwealth Games in 2002 and to provide a community legacy, this is the
world's most technically advanced pool complex.



We also won a 10-year extension to our management and operation contract at
Tenterden Leisure Centre in Kent, which will include significant investment in
new facilities. In Aylesbury Vale we won a 10-year extension to a leisure
centre contract, also involving investment in new facilities; and our
customer's satisfaction with our performance has led to a second leisure
centre contract. In Sweden we renewed our contract to run the Linkoping
Leisure Centre and won a five-year contract to manage the Umea Leisure Centre.



Defence

Defence is a growing and rapidly evolving market where customers are
increasingly looking to procure services or capabilities rather than assets.
In the UK alone the market for defence services is expected to reach £15.1
billion by 2009. We aim to maintain our position as a major service provider
to national defence forces through contract extensions and rebids, while
extending the depth and geographic spread of our capability.



In October we were named as preferred service provider for logistical support,
facilities management and range management services to the New Zealand Army's
principal training area in Waiouru. The six-year contract, with scope for
extension to 10 years, is worth NZ$60 million.



Importantly, we won a seven-year renewal of our contract at the Defence
Procurement Agency headquarters in Abbey Wood near Bristol. With work services
management added to our previous contract, we will have over 350 people
delivering a total corporate support service.



Another valuable renewal was a second one-year extension to our Royal Navy
marine services support contract at the Portsmouth, Devonport and Clyde
submarine bases, taking the original five-year term to seven years. This £35
million a year contract involves operating 140 Ministry of Defence vessels and
employs 700 seagoing and shore-based support staff.



We also successfully rebid for a further four years' consultancy to Germany's
part of a NATO Air Command and Control System project, and for the management
of the Defence Evaluation and Research Agency (DERA) Hebrides and Raasay
weapons testing ranges in Scotland.



We achieved an important addition to our facilities management business in
Germany by winning the contract to provide serviced accommodation for OCCAR,
the joint defence procurement body formed by Germany, the UK, France and
Italy.



Significant new UK contracts included spares and support for the Sonar 2093
system in Sandown Class minehunters; maintenance and repair support for Sonar
2054 training systems; and a contract from DERA to crew, operate and maintain
its new experimental research vessel RV Triton - a revolutionary trimaran that
will be used to test the triple hull concept for future Royal Navy warships.



To broaden our defence engineering skills and enhance our ability to provide
complete solutions, we acquired Rakmulti in July for £1 million. This is a
UK-based systems integration business specialising in high bandwidth satellite
communications, a growth area which is particularly important to naval
operations and 'out of area' activity for land and air forces.



In January 2001 we delivered the final vessel under a UK contract to design
and build seven passenger support vessels for the Naval Bases and Supply
Agency. The vessels were built at two UK shipyards.



Air transport

Air transport is a major global growth market and our aim has been to
consolidate our position as the world's leading provider of private air
traffic control (ATC) and aviation technical services.



In the US we successfully rebid for our ATC contracts with the FAA, further
increasing the number of towers under our control from 51 to 56. The contracts
are now worth over US$19 million a year. In the Middle East we renewed ATC and
technical services contracts at Dubai, Ras Al Khaimah and Sharjah
International Airports; and at Bahrain International Airport we will manage
the installation and commissioning of upgraded navigational aids. In Europe we
further extended our contracts with Eurocontrol and our operations at Zavantem
Airport in Brussels.



Under a planned PPP, the UK government is selling a controlling share of the
National Air Traffic Services (NATS) to a strategic partner. NATS is the UK's
ATC service covering UK airspace and the eastern parts of the North Atlantic
as well as 14 of the country's busiest airports. We have been shortlisted for
this partnership.



Rail transport

Rail is a large and technically complex market that is changing fast as a
result of deregulation worldwide. Our service expertise and in-depth
experience of safety management position us well for growth in activities as
diverse as infrastructure maintenance, testing and passenger services.



In the UK we phased-in our infrastructure maintenance contract with
Railtrack's East Midlands Zone, covering some 1,200 miles of track and
employing about 600 people. We have already been awarded additional contracts
for structures inspection and property maintenance, and are in discussions to
add track renewals. We also bid successfully for the property management and
maintenance contracts in Railtrack's Southern and Anglia Zones, increasing our
business in this field by 250%. Together with the renewal of our contract for
the North West Zone, this means that we now provide over 60% of Railtrack's
property maintenance.



Train testing is under way for the Copenhagen Metro, where we are scheduled to
start operating passenger services in 2002.



Information technology for transport infrastructures is a significant growth
area for us. In the UK we won the contract to run the Association of Train
Operating Companies' communication centre, which collects and distributes rail
information from Railtrack and train operators. At the National Rail Enquiry
Scheme we implemented a new information system and internet site - in time to
assist with a tenfold increase in enquiries during the prolonged upheaval that
followed the Hatfield rail crash. In Scotland, the rail operator ScotRail,
part of the National Express Group, extended our information and telesales
contract after we helped to increase revenues by 50% in two years.



As operator of London's award-winning Docklands Light Railway (DLR) we have
been enhancing the service by displaying real-time train information in
streets and buildings around stations, on the DLR website and via WAP mobile
phones. We are also trialling real-time news and information screens in trains
- a UK first. In Australia we introduced email booking and enquiry facilities
for our Ghan, Indian Pacific and Overland trains, followed by direct internet
booking early in 2001. These services, which rank among the great train
journeys of the world, attract tourists from all over the globe.

In the UK we began acceptance testing of new non-tilting trains for Virgin
CrossCountry services, under a new contract with Bombardier Transportation. We
also secured a contract from ALSTOM to undertake certain aspects of the
acceptance testing on the Coradia 1000 Class 180 diesel trains.



Road transport

Congestion is a major issue for cities worldwide - it costs the UK economy
alone over £15 billion a year. The efficient use of traffic infrastructure has
become a major growth area, and we aim to develop a breadth of capability
across road transport that enables us to support customers in devising and
implementing integrated transport plans.



We are in negotiation with the UK Highways Agency for a contract to build and
operate its national Traffic Control Centre. This will allow the strategic
management of traffic on England's core trunk road network, monitor traffic
and journey times, and distribute traffic and travel information through
existing and new media. We would construct the centre and develop its IT
systems over a 21/2-year period, and then operate and maintain it for a
further 71/2 years.



In Scotland we bid successfully to expand the scope of the country's National
Driver Information and Control System. This integrated traffic management
system, which we have been developing since 1993, is now one of the world's
largest and most advanced driver information and control systems.



In New Zealand we have won a three-year contract to operate and maintain a
traffic control centre for the Auckland motorway system. This contract
complements our existing communications and traffic control contracts. We
successfully rebid our contract to manage Auckland's state highway and
motorway network including maintenance, asset management strategy and traffic
planning.



In Hong Kong we won a further six-year contract to manage the Lion Rock and
Airport Road tunnels.     The new contracts - extending a relationship begun
in 1993 - will employ over 200 staff.



The City of Birmingham in England appointed us to set up a bus tracking and
passenger information system modelled on the satellite-based systems we have
provided in Coventry and Sheffield. These    supply real-time information to
operators and passengers, and give buses priority at traffic-signalled
junctions.



Science and technology

Governments around the world are increasingly concerned to improve the
effectiveness of their science and technology spend through investment in new
equipment and better knowledge transfer to industry. As a major employer of
scientists, we are looking to extend our presence in this market.



We successfully phased-in the management and operation of the UK Atomic
Weapons Establishment (AWE), managing over 4,000 staff through our joint
venture with Lockheed Martin UK Ltd and British Nuclear Fuels plc. Both the
Nuclear Installations Inspectorate and the Environment Agency have praised our
safety and environmental performance to date. Our operations have already been
extended to include support for the weapons convoys serving the AWE - a
significant demonstration of our customer's confidence in our capability.



We are negotiating a two-year extension to our contract to manage the National
Physical Laboratory (NPL), where we are currently investing in extensive new
laboratory facilities to replace 50 of the site's 73 buildings. Another
investment to maintain the NPL's position among the world's top three
measurement laboratories is the creation of one of the world's largest
scientific websites. We continue to create revenue-generation opportunities,
including a new Knowledge Transfer Centre which is already producing income of
£4 million a year. Current NPL programmes include a £7 million government
project to promote environmental best practice and a series of R&D contracts
with companies leading the fibre optic communications revolution.



We further extended our activities with the European Space Agency by winning
two new contracts at the European Space Research and Technology Centre in the
Netherlands. The first provides support services in thermal microgravity
instruments, robotics and optics laboratories; the second is for radiation and
quality testing of satellite components.



In partnership with Air Liquide of France and Linde Kryotechnik of Switzerland
we have been selected by the European organisation for nuclear research, CERN,
to maintain and operate its helium cryogenic plants, the world's largest
cryogenic installation, from July 2001. This is the fourth contract we have
secured with CERN.



Private sector

As businesses focus their talent and investment on areas of competitive
advantage, they increasingly seek external management support for non-core
activities. Our experience of managing critical services for governments
positions us well to handle the outsourcing of ever more complex tasks for the
private sector.



We have become Ireland's leading facilities management company, benefiting
from the country's economic growth and the influx of US companies. In January
we began a facilities management contract with Microsoft, covering a wide
range of technical and non-technical services in the company's 12 Dublin
premises. These include its European operations and product localisation
centres.



We have also extended our reach in Northern Ireland with a two-year facilities
management contract for the Bank of Ireland at its new Belfast operations
centre.



Worldwide developments in e-commerce, internet application services,
interactive television and WAP are creating exciting prospects for our
usability business, which helps companies to make their technology
user-friendly. In November we opened a new purpose-built usability laboratory
in London. To increase our international presence in this field we acquired
The Hiser Group in Australia; the AUS$6 million deal, completed in January
2001, brings us one of the world's most respected consultancies in user
interface design and usability. We have recently been asked by the UK
government to form an industry network covering interactive TV issues.



In New Zealand we extended our contract to provide property maintenance and
building services at 4,000 sites for Telecom New Zealand, the country's
largest business. This contract has grown to include Telecom's preventive
maintenance programme, and in the past two years we have earned substantial
incentive payments for achieving cost savings.



In Sweden we built on our existing building maintenance contract at
Stockholm's Grand Hotel, winning a new contract to manage a SEK150 million
renovation project. We continue to extend our relationship with the hotel -
this year we have added responsibility for cleaning and transport support
services.



We extended our Welsh facilities management contract with the stainless steel
company AvestaPolarit after successfully growing the contract since 1992.



In the US we built on our existing vehicle fleet maintenance contract with
Dayton Power & Light to win an additional contract to provide mobile tanker
refuelling for its 900-strong vehicle fleet. We added value to the contract by
enhancing our mobile maintenance service - introducing hand-held data
terminals and a wireless internet management information system.



The expertise we gain in the public sector can often have applications in the
commercial sector. For instance, our defence business has won a contract to
provide engineering support to Global Marine Systems, the world's leading
submarine cable maintenance and installation company. The contract includes
operation and maintenance of sub-sea vehicles for installing fibre optic
telecommunication cables.



Outlook

Our markets remain buoyant and our ability to deliver a full range of services
in a single contract is increasingly in demand. Our largest markets, in
defence and transport, remain very strong - and we also see increasing
opportunity in new fields such as science, justice and education. The scale
and complexity of opportunities continue to increase, and this plays to our
strengths in both bidding and implementation.



We are seen as a world leader in private sector solutions for delivering
public services and we expect to be a significant beneficiary of a worldwide
trend towards PFIs and PPPs. The US has started discussing PPPs in the space
sector, the Australian Department of Defence is developing a PFI methodology,
the state of New South Wales has released a green paper on PFIs, Japan has
begun inviting PFI tenders, and Germany has initiated pilot projects in
defence. We have formed a Global Projects team to identify and bid for the
very large and complex opportunities that are beginning to emerge around the
world; and we are forming partnerships and strategic alliances with major
international corporations where we believe they will enhance our credibility
in this exciting new arena.



The outlook for the future remains bright and we are confident of maintaining
our growth record for the foreseeable future.



                                   - Ends -



The Serco Group plc Annual Review and Accounts 2000 is available from today on
our internet site at www.serco.com.



Notes to Editors

Serco Group plc is an international provider of management services to
government and industry, covering a comprehensive range of engineering and
support activities across many applications.



For further information please contact Serco Group plc:  T: [phone]

Richard White             Executive Chairman    Kevin Beeston  Chief Executive
Christopher Hyman         Finance Director


Proforma Summary Consolidated Profit and Loss Account
For the year ended 31 December 2000


                                                                   2000   1999
                                                                  £'000  £'000

Turnover: Group and share of joint ventures                     966,991 807,544
Less: share of joint ventures                                 (194,948)(138,982)
Group turnover                                                   772,043 668,562
Cost of sales                                                 (669,361)(580,586)

Gross profit                                                     102,682 87,976
Administrative expenses excluding goodwill                     (74,601) (58,259)
Share of profits arising from joint ventures - including group   13,172  4,350
joint venture costs and joint venture interest

Profit before group interest and goodwill                        41,253 34,067
Net group interest
                                                                 (3,543) (2,643)
Profit on ordinary activities before taxation - pre amortisation 37,710 31,424
of goodwill
Amortisation of goodwill                                         (3,681) (2,092)
Profit on ordinary activities before taxation                    34,029 29,332
Taxation on profit on ordinary activities                       (11,059) (9,538)
Profit on ordinary activities after taxation                     22,970 19,794
Dividends                                                        (6,387) (5,593)
Retained profit for the financial year                           16,583 14,201

Earnings per Share ('EPS') of 2p each:
Basic EPS, after amortisation of goodwill                     5.85p     5.09p *
Basic EPS, before amortisation of goodwill                    6.78p     5.63p *
Diluted EPS, after amortisation of goodwill                   5.79p     5.06p *
Diluted EPS, before amortisation of goodwill                  6.72p     5.60p *

Dividend per share:
Interim dividend                                              0.50p     0.44p *
Proposed final dividend                                       1.13p     0.98p *


*  Restated to reflect a share capitalisation of five shares for every one
   held approved by shareholders on 5 April 2000


The financial information set out on pages 9 to 12 does not constitute the
Company's statutory accounts for the years ended 31 December 2000 or 1999, but
is derived from those accounts.  Statutory accounts for 1999 have been
delivered to the Register of Companies and those for 2000 will be delivered
following the Company's Annual General Meeting.  The auditors have reported on
those accounts; their reports were unqualified and did not contain statements
under s237(2) or (3) of the Companies Act 1985.


To aid in the understanding of the results of the Group and its joint ventures
a proforma summary profit and loss account has been included as an alternative
presentation.


Statutory Consolidated Profit and Loss Account
For the year ended 31 December 2000


                                                                  1999 Restated
                                2000     2000    2000    1999    Joint     1999
                                        Joint                 Ventures
                               Group Ventures   Total   Group    £'000    Total
                               £'000    £'000   £'000   £'000             £'000

Turnover: Group and share of 772,043  194,948 966,991 668,562  138,982  807,544
joint ventures - continuing
operations
Less: share of joint              - (194,948) (194,948)    - (138,982) (138,982)
ventures
Group turnover               772,043        - 772,043 668,562        -  668,562
Cost of sales              (669,361)        -(669,361)(580,586)      - (580,586)

Gross profit                 102,682        - 102,682  87,976        -   87,976
Administrative expenses      (78,282)        - (78,282) (60,351)     - (60,351)
       Amortisation of       (3,681)        - (3,681) (2,092)        -  (2,092)
              goodwill
       Other administrative  (74,601)       - (74,601) (58,259)      - (58,259)
expenses
Other operating costs              -  (7,654) (7,654)       -  (3,473)  (3,473)
relating
to joint ventures

Operating profit -            24,400  (7,654)  16,746  27,625  (3,473)   24,152
continuing operations
Share of operating profit in       -   28,876  28,876       -   11,121   11,121
joint ventures
Interest receivable            1,212      139   1,351   1,517       79    1,596
       Group                   1,212        -   1,212   1,517        -    1,517
       Share of joint              -      139     139       -       79       79
          ventures
Interest payable and similar (4,755)  (8,189) (12,944) (4,160)  (3,377)  (7,537)
charges
       Group                 (4,755)        - (4,755) (4,160)        -  (4,160)
       Share of joint              -  (8,189) (8,189)       -  (3,377)  (3,377)
           ventures
Profit on ordinary            20,857   13,172  34,029  24,982    4,350   29,332
activities before taxation
Taxation on profit on                         (11,059)                   (9,538)
ordinary activities

Profit on ordinary                             22,970                    19,794
activities after taxation

Dividends                                     (6,387)                   (5,593)

Retained profit for the                        16,583                    14,201
financial year


Earnings per Share ('EPS') of 2p each:
Basic EPS, after
  amortisation of goodwill                      5.85p                   5.09p *
Basic EPS, before
  amortisation of goodwill                      6.78p                   5.63p *
Diluted EPS, after
  amortisation of goodwill                      5.79p                   5.06p *
Diluted EPS, before
  amortisation of goodwill                      6.72p                   5.60p *

*  Restated to reflect the capitalisation issue on 5 April 2000.


Summary Consolidated Balance Sheet
At 31 December 2000


                                                            2000           1999
                                                           £'000          £'000
Fixed assets
Intangible asset                                          68,662         66,854
Tangible assets                                           40,269         36,508
Investments in joint ventures                             27,688         18,022
Investments in own shares                                  9,680              -
Total fixed assets                                       146,299        121,384
Current assets/(liabilities)
Stocks                                                    25,942         26,830
Debtors                                                  190,729        161,900
Cash (net of overdraft)                                   45,497         35,187
Trade and other creditors                              (137,957)      (105,565)
Accruals and deferred income                            (88,386)       (74,970)
Net current assets                                        35,825         43,382
Long term creditors                                     (47,121)       (47,232)
Provisions for liabilities and charges                  (26,078)       (25,906)
Equity shareholders' funds                               108,925         91,628



Summary Consolidated Cash Flow Statement
For the year ended 31 December 2000


                                                                 2000      1999
                                                                £'000     £'000
Net cash inflow from operating activities                      45,534    36,818
Dividends received from joint ventures                          7,477     2,156
Returns on investment and servicing of finance                (3,805)   (3,482)
Taxation                                                      (5,653)   (7,279)
Capital expenditure and financial investment                 (17,965)   (4,627)
Acquisitions and disposals                                    (8,174)  (26,288)
Equity dividends paid                                         (5,816)   (5,018)
Net cash inflow/(outflow) before financing                     11,598   (7,720)
Financing                                                     (1,288)   (1,084)
Increase / (decrease) in cash                                  10,310   (8,804)
Balance at 1 January                                           35,187    43,991
Balance at 31 December                                         45,497    35,187


Distribution of Annual Review and Accounts

Copies of the Annual Review and Accounts, or where appropriate, Annual Review
and Summary Financial Statements are being sent to all shareholders of Serco
Group plc. Copies are available on 20 February 2001 from either our internet
site at www.serco.com or on request from the Registered Office:


Serco Group plc
Dolphin House
Windmill Road
Sunbury-on-Thames
Middlesex TW16 7HT
United Kingdom

T:         [phone]
F:         [phone]

Dividends

It is proposed that a final dividend of 1.13 pence (net) per ordinary share is
paid on 6 April 2001 to Shareholders on the Register of Members as at 2 March
2001 (Record Date).

Notes to Editors
Serco Group plc is an international provider of management services to
government and industry, covering a comprehensive range of engineering and
support activities across many applications.


For further information please contact Serco Group plc: T: [phone]

Richard White   -   Executive Chairman    Kevin Beeston  -      Chief Executive
Christopher Hyman   -   Finance Director