4th Aug 2016 06:41
LONDON (Alliance News) - Outsourcer Serco Group PLC on Thursday increased its guidance for 2016 following a better-than-expected trading performance in the first half of 2016.
The FTSE 250-listed group said it expects revenue of around GBP3.0 billion for the full year, and underlying trading profit of not less than GBP80.0 million. This compares to previous guidance for revenue of GBP2.9 billion and underlying trading profit of GBP65.0 million.
The upgrade is the second time Serco has upgraded guidance for 2016 following better-than-expected trading. The new upgrade has also been driven by currency benefits the group anticipates following the fall in sterling after the Brexit vote.
For the first half of 2016, Serco said underlying trading profit was GBP51.0 million, up from GBP46.9 million a year earlier, as total revenue fell to GBP1.52 billion from GBP1.79 billion. The group made an interim pretax profit of GBP58.1 million, swung from a GBP16.0 million loss a year earlier.
The trading profit boost was driven by better-than-expected resolutions on commercial contract negotiations and certain contracts running on longer than had been anticipated, Serco said.
"Performance for the first half of the year has been better than we expected. Although much of the improvement came from items that will not recur, it reflects the result of a lot of hard work and successful resolution of a number of commercial issues," said Serco Chief Executive Rupert Soames.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Serco