12th Dec 2019 09:25
(Alliance News) - Serco Group PLC said Thursday it expects strong revenue growth and "record" order intake for 2019, with further strong growth in revenue and profit in 2020.
The services company said it expects revenue growth of 14% to GBP3.2 billion in 2019 from GBP2.8 billion a year ago.
Second -half revenue growth expected to be around 20% following the successful integration and five months of contribution from the Naval Systems Business Unit, which was acquired from Alion Science & Technology Corp for USD225 million in May.
Underlying trading profit expected to grow by about 30% to around GBP120 million in 2019 from GBP93 million a year ago, while its "record" order intake is expected to exceed GBP5 billion for the year.
Looking ahead, Serco said it expects continued strong growth in 2020 with revenue between GBP3.4 billion and GBP3.5 billion.
Rupert Soames, chief executive officer, said: "The results that we expect to report for 2019 will represent the second successive year of strong growth in revenue and profit, while our positive outlook for 2020 means that we expect to double our underlying trading profit from the GBP69 million achieved in 2017 to the GBP145 million we plan to deliver in 2020."
The company said it will publish its annual results on February 26.
Serco shares were up 2.2% in London at 149.20 pence each on Thursday morning.
By Loreta Juodagalvyte; [email protected]
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