2nd Nov 2020 10:48
(Alliance News) - Shares in Serco Group PLC on Monday after announcing that partially owned AWE PLC will transfer back to the direct control and management of the UK Ministry of Defence with effect on June 30, 2021.
Shares in the Hampshire-based outsourcer were 13% lower at 112.00 pence on Monday in London, the worst performer in the FTSE 250 index.
AWE is an entity that controls the Atomic Weapons Establishment, a business which designs and manufactures nuclear warheads for the UK. AWE is managed by AWE Management Ltd, in which Serco holds a 24.5% interest.
Other shareholders include US defence group Lockheed Martin Corp, which holds 51%, and US professional services provider Jacobs Engineering Group Inc, which also holds a 24.5% stake.
The consortium was managed AWE for 20 years since 2000. Serco expects AWE to contribute GBP17 million in underlying trading profit and post-tax profit in 2020.
Despite the difficulty of forecasting due to the pandemic, the group expects underlying trading profit and post-tax profit for 2021 to remains broadly in line with market consensus and with expectations for 2020 results, reflecting a rise of 25% over 2019's figures.
For 2019, underlying trading profit was GBP120.3 million, and post-tax profit at GBP27.5 million.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Serco