Serco Group plc - Pre-Close Trading Update
17 December 2008
On track to deliver on 2008 expectations
Ahead of its full year end on 31 December and pre-close meetings with analysts,
Serco Group plc (Serco) reconfirms the guidance given in its Interim Management
Statement on 13 November that it is on track to deliver on expectations for
2008.
Serco continues to have excellent visibility over its revenues with a
significant pipeline of opportunities, and remains confident of delivering
double-digit revenue growth for the foreseeable future. We continue to expect,
through management of our contract portfolio, efficiency programmes and
selective bidding, an increase of 30 basis points in our Adjusted PBT margin
for the current business in each of 2008 and 2009.
Smaller and medium-sized contract wins continue to play an important role in
our growth. Today we have published on www.serco.com detail on a selection of
these wins in the second half of 2008, which are valued at over £400m.
Given our focus on service excellence and long-term relationships with our
customers, we are well positioned to support them in the challenging economic
environment by improving efficiency, reducing cost, and delivering value for
money services.
In August, we announced that we had signed a definitive agreement to acquire SI
International, a leading US Federal Government services contractor, for
approximately US$510m (including net debt). SI International will enhance our
ability to deliver integrated solutions into the US$290bn US government
services market through our increased scale, deeper capabilities, improved
access to higher growth areas, and broader customer relationships. The closing
of the acquisition remains conditional upon Exon-Florio regulatory approval and
customary closing conditions. We continue to expect the acquisition to complete
before the end of 2008.
Serco will release its 2008 preliminary results on 26 February 2009.
Ends
For further information please contact Serco Group plc: +44 (0) 1256 745 900
Charles King, Head of Investor Relations
Dominic Cheetham, Corporate Communications Director
www.serco.com
About Serco
Serco is a FTSE 100 international service company which combines commercial
know-how with a deep public service ethos.
We improve services by managing people, processes, technology and assets more
effectively. We advise policy makers, design innovative solutions, integrate
systems and - most of all - deliver to the public.
Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, health, home affairs, local government, science,
technology, transport and the commercial sectors.
More information can be found at www.serco.com.
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