Serco says in line, on track for 2012 targets

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Source:  www.reuters.com

British outsourcing group Serco said it was on track with its 2011 expectations after some strong contract wins and was well placed to achieve future revenue targets.

Serco companySerco, which among other things runs London’s cycle-hire scheme and Dubai’s metro, on Monday said it had won 1.6 billion pounds ($2.62 billion) worth of work since the start of its financial year on Jan. 1.

The group, which last month won two contracts under the British government’s welfare-to-work scheme, added it was well placed to achieve revenue of 5 billion pounds and an increase in adjusted operating profit margin to 6.3 percent in 2012.

Revenue for 2010 was 4.33 billion pounds.

In the UK, Serco said it expected to benefit from increased contract opportunities in the medium-term as the government looks to outsource some of its national public services.

A government white paper outlining its plans for public service reform is due to be published in the summer.

The group said it was encouraged by IT opportunities in the Americas, justice and defence work in the Asia Pacific region and healthcare, transport and education in the Middle East and India.

Shares in the FTSE-100 listed company closed at 547 pence on Friday, down 13 percent on a year ago, valuing the business at around 2.7 billion pounds.