AGM Statement
4 May 2007
Ahead of today's Annual General Meeting, Serco Group plc (Serco) releases the
following update on current trading:
After an excellent year in 2006, Serco has made a strong start to 2007, signing
or being appointed preferred bidder for contracts valued at around £1bn. We
continue to make in-roads into new areas such as the defence market in the US,
the home affairs market in Australia and the UK's business process outsourcing
market.
These wins and the scale of the opportunities we see make us confident of
performing in line with expectations for the year. Our margins are increasing
as expected, resulting from our ongoing focus on managing our contract
portfolio, bidding selectively and enhancing efficiency.
Smaller and medium sized contracts are the lifeblood of Serco and today we have
released a news update which rounds up just some of the wins, rebids and
extensions we have achieved so far this year.
And we have also announced this year a number of larger wins including an
eight-year, £85m contract with the UK Home Office to run Yarl's Wood
Immigration Removal Centre. The UK Ministry of Defence has appointed us
preferred bidder to manage the maintenance, repair and operation of the UK
Armed Forces estate facilities in Gibraltar. This five-year contract is valued
at around £50m.
In the United States we have renewed, and significantly increased, our contract
with the US Postal Service to provide engineering, technical, project
management and IT services. Over ten years it has a potential value of $260m.
We also built upon our long-standing work for the US Navy's Space and Naval
Warfare Systems Center. A new engineering and installation service contract is
potentially valued at $200m over five years. In addition, the US Army has
selected Serco for a $225m contract to provide cost analysis, logistics
planning and supply chain consulting services worldwide.
Governments around the world are increasingly experiencing the same challenges
and are driven by demands for both better public services and reduced tax
burdens. This creates ever-growing markets for Serco and our combination of
public service ethos and commercial acumen means we are ideally positioned to
support them. At the same time, we continue to develop our people and systems
to support this high quality growth.
As a consequence, we remain confident of delivering double-digit growth for the
foreseeable future and further increasing margins.
(End)
Notes to Editors
Serco is an international service company which combines commercial know-how
with a deep public service ethos.
Serco improves services by managing people, processes, technology and assets
more effectively in the health, education, home affairs, local government,
science, technology, defence, transport and commercial sectors, in 37
countries.
Serco advises policy makers, designs innovative solutions, integrates systems
and delivers to the public. More information can be found at www.serco.com.
For further information please contact Serco: +44 (0) 1256 745 900
Richard Hollins, Head of Investor Relations
Dominic Cheetham, Director of Corporate Communications
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