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Serco Group expects record order intake of £5bn for 2019 as it grows revenue

By BFN News | 07:46 AM | Thursday 12 December, 2019


International service company Serco Group has reported full-year 2019 revenue is expected to grow by 14% to £3.2bn following particularly strong revenue growth in the second half, in its scheduled closed period update on trading for the 2019 financial year. The group expects second half revenue growth of 20%, of which approximately 10% will be organic growth, and 8% as a result of the five months of contribution of the Naval Systems Business Unit acquisition which completed in August. Underlying trading profit is expected to grow by about 30% to around £120m for the full-year 2019, while Serco has announced it expects record order intake at more than £5bn and a book-to-bill ratio of over 150%, making 2019 the third year in a row in which order intake exceeds revenues. In its initial outlook for 2020, Serco said it forecast continued strong growth with revenue of £3.4bn to £3.5bn, while underlying trading profit is expected to grow by about 20% to around £145m. Serco Group chief executive Rupert Soames said there had been 'excellent growth' in both its North America and Asia Pacific divisions, while the UK also delivered 'a good performance', returning to organic growth in the second half for the first time since 2013. Soames said: 'Perhaps the most notable aspect of 2019, however, is the record order intake of over £5bn, representing over 150% of annual revenues, which demonstrates the confidence our customers have in us to deliver critical, sensitive and complex public services. Between the start of 2017 and the end of 2019, our order book will have increased by more than 40% from £10bn to over £14bn.' Serco will be in a closed period between 1 January 2020 and the publication of its results for the 2019 financial year on 26 February 2020. Story provided by StockMarketWire.com

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