Serco Group plc - Pre-Close Trading Update
29 June 2009
On track to deliver 2009 guidance
Ahead of its half year end tomorrow, Serco Group plc (Serco) releases the
following update on first half performance.
We remain on track to deliver on our guidance for 2009, and we continue to see
significant opportunities to help our customers deliver value for money
services in the current challenging economic environment.
In the first half we have seen a high level of activity in bidding across all
our markets and regions. At our AGM on 12 May we announced that we had signed
contracts with a total value of £1bn. Since then, we have announced that we
have been selected on over £1bn of further contracts, including wins valued at
£245m for Air Traffic Services at Dubai Airport and £140m for Plymouth
Hospitals services, and our selection as preferred bidder for three Flexible
New Deal contracts in the UK worth up to £500m.
We have today announced that we have signed an AUS$370m (£180m) contract with
the Australian Government's Department of Immigration and Citizenship to
transform its immigration detention centres.
We are making excellent progress with the integration of SI International, and
we now have a strong foundation for growth in the world's largest government
services market.
In summary, we have seen a sustained high level of activity throughout the
first half, trading remains strong, and we continue to generate good cash flow.
In the first half, we expect a modest increase in working capital investment
compared to the same period last year driven by the significant number of
contract start ups and transitions, and acquisition integration.
Our broad capabilities and the flexibility we have in deploying them, together
with our pipeline of opportunities in existing and new markets and our
substantial order book, support our expectation of continued strong
performance.
Serco will release its 2009 half year results on 26 August 2009.
Ends
For further information please contact Serco:
T +44 (0) 1256 745 900
Charles King, Head of Investor Relations
Dominic Cheetham, Director of Corporate Communications
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
Financial guidance
Our projections are that our revenue will increase to approximately £5bn and
our Adjusted operating profit margin to approximately 6.3% by the end of 2012,
excluding material acquisitions, disposals and currency effects. In 2009, we
expect to deliver double-digit revenue growth and a 30bps increase in our
Adjusted PBT margin, excluding SI International. The addition of SI
International is anticipated to increase our 2009 revenue growth by
approximately 10%. Including the benefit of SI International, we expect our
Adjusted operating profit margin of 5.3% in 2008 to increase by approximately
40 bps in 2009. This 2009 guidance excludes material currency effects.
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