Pre-close statement

SERCO GROUP PLC - Pre-close statement

PR Newswire

London, December 19

Pre-close statement

20 December 2012

Ahead of Serco Group plc entering its close period for the financial yearending 31 December 2012, and following the recent Interim Management Statementreleased on 16 November 2012, we will be holding our customary pre-closemeetings with analysts over the coming days. No new material information willbe disclosed. The Group remains on track to meet expectations for 2012: weexpect to deliver another year of strong total revenue growth, includingfurther good organic growth, together with an increase in Adjusted operatingmargin similar to that achieved in 2011. Serco will release its 2012 full yearresults on Wednesday 6 March 2013.

Further to the announcement on 7 November 2012, Serco confirms that thenecessary consents and statutory approvals regarding the purchase of DMSMaritime have been received, with the transaction recently completing at anacquisition cost of £82m (comprising cash consideration paid of £69m andincremental net debt acquired of £13m) as previously described.

Serco has also recently reached agreement on two small disposals of operations,in line with our stated strategy to proactively manage the portfolio byassessing strategic fit together with expected future levels of performance andreturns. Our education software and UK data hosting operations had becomenon-core to the ongoing development of the Group and have both experiencedsignificant changes in market conditions. Aggregate cash consideration receivedon these transactions is £6m, resulting in a provisional non-cash exceptionalaccounting loss on disposal of approximately £25m. For the year to 31 December2011, the financial result of these operations was approximately £14m ofrevenue and £2m of Adjusted operating profit.

In a separate announcement today, Serco has set out its plans to establish theSerco Foundation as an independent charitable foundation to mark Serco's 25thyear as a publicly traded company dedicated to service excellence. Serco ismaking a one-off endowment of £5m to the foundation and will provide ongoingsupport for its mission to help charities through the application of Serco'speople, skills and capabilities.

Taking into account the above, together with the net profit on disposalsreported in the first half, exceptional items are expected to have a broadlyneutral impact on the income statement for the 2012 financial year.

Chris Hyman, Chief Executive of Serco Group plc, said: "I am pleased with theoperational and financial performance delivered by the Group in 2012,particularly in the light of challenging conditions in some of our markets.Establishing the Serco Foundation will allow us to help charities and otherorganisations make an even bigger long-lasting difference in addressing some ofthe world's most critical issues. We have also progressed the proactivemanagement of our portfolio, as well as strengthening Serco's overallpositioning with our new BPO division, Serco Global Services, which in turnsupports our confidence as we look to 2013 and beyond."

Ends

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227

Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226

About Serco

Serco is a FTSE 100 international service company, which combines commercialknow-how with a deep public service ethos.

Around the world, we improve essential services by managing people, processes,technology and assets more effectively. We advise policy makers, designinnovative solutions, integrate systems and - most of all - deliver to thepublic.

Serco supports governments, agencies and companies who seek a trusted partnerwith a solid track record of providing assured service excellence. Our peopleoffer operational, management and consulting expertise in the aviation, BPO,defence, education, environmental services, facilities management, health, homeaffairs, information and communications technology, knowledge services, localgovernment, science and nuclear, transport, welfare to work and the commercialsectors.

More information can be found at www.serco.com