25th May 2016 06:54
LONDON (Alliance News) - Outsourcer Serco Group PLC on Wednesday said it anticipates underlying trading profit for 2016 will be ahead of current market expectations.
Serco said its financial performance in the first four months of 2016 has been stronger than anticipated, primarily due to good outcomes on a number of commercial negotiations.
The group said the outcome of those talks will sharply increase first half profit, though this will not repeat in the future.
Serco said it now expects underlying trading profit for 2016 to be no less than GBP65.0 million, compared to the GBP50.0 million the group had previously guided. Revenue will also be higher than expected, at GBP2.9 billion against the GBP2.8 billion previously anticipated.
"It is encouraging that we are able to announce an upgrade to our guidance for the year, albeit that much of this improvement comes from items that will not recur," said Chief Executive Rupert Soames.
By Sam Unsted; [email protected]; @SamUAtAlliance
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