27th Jun 2005 06:01
27 June 2005 Serco Group plc Pre-Close Trading Update Ahead of its financial half year end on 30 June 2005 and its pre-close meetingswith analysts, Serco Group plc ("Serco") today releases the following update oncurrent trading:During the first six months of the year Serco has achieved significant growth,both organically and from recent acquisitions. As a result, Serco continues totrade in line with expectations.The phase-in of Northern Rail is proceeding well, with strong operationalperformance in the first half. In addition, as previously announced, Serco hassigned or been appointed preferred bidder for a number of significantcontracts. These include the Defence Academy Campus Integrator, the LeicesterUniversity Hospitals Pathway PFI and a contract to operate and maintain a rapidrail transit line in Vancouver, Canada.ITNET, which has been rebranded Serco Solutions, has performed in line with ourforecasts since the acquisition in February. The integration of the business isgoing well and is on track to deliver the expected cost synergies. While, asanticipated, Serco Solutions' first half revenue will be below that for thecorresponding period last year, we are continuing to receive positive responsesfrom customers and are seeing more organic growth opportunities as a result.Serco Solutions has continued to win new business, including extensions to itscontracts with the London Boroughs of Southwark, Enfield and Ealing.RCI, which we acquired in March, has been rebranded Serco Inc. The business istrading very well and in line with our forecasts. The rate of new businessgrowth is encouraging, with orders for several new contracts and strong organicgrowth from existing contracts. Serco Inc has also successfully rebid animportant programme to help retiring US Army soldiers and officers return tocivilian life.The six months to 30 June will be Serco's first reported period underInternational Financial Reporting Standards ("IFRS"). An indication of the keyareas of impact on Serco's reported results was set out in our announcement of1 March 2005. The transition work is ongoing as part of the half year review bySerco's auditors, Deloitte & Touche. At this stage, we anticipate that theimpact of IFRS on the half year will be materially the same as that indicatedat the time of the March announcement.Overall, market conditions for the Group are favourable. We remain confident ofour ability to deliver strong and profitable growth, both this year and for theforeseeable future.Serco will release its interim results on 31 August 2005. - Ends - For further information, please contact:Serco Group plc 01256 745900Dominic Cheetham, Corporate Communications DirectorRichard Hollins, Head of Investor RelationsNotes to EditorsSerco is one of the world's leading service companies operating on aninternational basis in a wide range of sectors, including transport, defence,health, education, local government, home affairs and science. More informationcan be found at www.serco.com.ENDSERCO GROUP PLCRelated Shares:
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