28th Feb 2023 10:16
(Alliance News) - Outsourcer Serco Group PLC on Tuesday said annual revenue ticked up as it recovered from Covid, while it announced a new share buyback for 2023.
Serco said revenue in 2022 increased 2.5% year-on-year to GBP4.53 billion from GBP4.42 billion in 2021. It said revenue fell 1% in constant currency, however.
It saw a drop in Covid-related revenue of GBP480 million. Excluding Covid and currency, revenue was up 11%.
Pretax profit edged up 2.4% to GBP196.8 million from GBP192.2 million.
Chief Executive Officer Mark Irwin said: "As well as a strong and consistent financial performance, we move out of the Covid period, with a business that has stronger customer relationships, improved geographic diversity, more resilience, and greater opportunities focused on impacting a better future for people, place, and planet."
Serco announced a new GBP90 million share buyback for 2023, and increased its final dividend in 2022 by 19% to 1.92p. The final payout brings its total dividend to 2.86p, up from the 2.41p paid for 2021.
The company left revenue and profit guidance for 2023 unchanged, with underlying trading profit guidance to be similar to 2022's GBP235 million. It continues to target a 4% to 6% revenue growth per year on average.
Serco shares were 4.0% higher at 154.90 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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