7th Dec 2015 07:22
LONDON (Alliance News) - FTSE 250-listed company outsourcer Serco Group PLC on Monday said its trading for 2015 is set to come in ahead of previous guidance and while its still expects declines in revenue and trading profit in 2016, free cash outflows will be better-than-anticipated.
Serco said trading in 2015 has been ahead of its expectations, with underlying trading profit set to beat its guidance and its reported trading profit to be significant higher than its underlying figures due to an improved operational performance or renegotiation on loss-making contracts.
Free cash outflow in 2015 will be better than Serco anticipated, and despite the expected revenue and trading profit decline in 2016, its free cash outflow will be better in comparison to 2015, due to the progress made by the group in dealing with onerous contracts on its books, the company said.
Serco added it has exceeded its cost savings targets for 2015 and is seeking to cut another GBP50.0 million in central support and other overheads in 2016.
"We expect to deliver a better performance than we originally expected in 2015, which reflects the fact that we are beginning to make progress and are delivering on our promises," said Rupert Soames, Serco's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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