Results Information
Strong financial performance; well placed to support customers around the world
Serco Group plc - 2010 Half Year results
6 months to 30 June
2010 | 20098 | % change | |
|---|---|---|---|
| Revenue | £2,140.3 | £1,949.8m | up 9.8% |
| Adjusted operating profit | £124.4m | £110.0m | up 13.1% |
| Operating profit | £115.6m | £101.1m | up 14.3% |
| Profit before tax | £101.4m | £83.4m | up 21.6% |
| Adjusted earnings per share | 16.53p | 14.02p | up 17.9% |
| Earnings per share | 15.13p | 12.62p | up 19.9% |
| Dividend per share | 2.20p | 1.85p | up 18.9% |
| Group free cash flow | £93.0m | £50.7m | up 83.4% |
Strong financial performance
- Revenue growth of 9.8% (8.5% excluding currency)
- Adjusted operating profit margin increase of 17bps to 5.8% (16bps increase excluding currency)
- Group free cash flow increase of 83.4% to £93.0m; reflects a strong performance and a greater first half weighting of cash generation than in previous years
- Strong balance sheet and cash flow support planned £60m contribution to Group pension scheme
Substantial UK and international activity, winning and delivering quality, essential front line services
- Signed contracts in first half of £2.2bn, across a wide portfolio of geographies and markets
- Operational excellence supports continued high win rates of one in two new bids and 90% of rebids
- Order book of £16.7bn at 30 June 2010 (£17.1bn at 31 Dec 2009)
Supporting customers around the world in achieving savings and transforming services
- Continue to deliver strong growth, even as some markets change, through agile and innovative responses to our customers' needs
- Discussions ongoing with the UK Cabinet Office's Efficiency and Reform Group on cost savings
- Enhanced capabilities and breadth of portfolio in international businesses, which now account for nearly 40% of our revenues, showing substantial growth potential
- Well placed to benefit from developing opportunities given our strong customer relationships, our critical mass in UK and international markets, and track record of transforming services
- Visibility of 98% of planned revenue for 2010, 84% for 2011 and 71% for 2012
- Substantial £28bn pipeline of specific, identified opportunities; shaping significant potential further opportunities across our international markets and in the UK
- In 2010, continue to expect strong organic revenue growth and further progress towards our 2012 margin guidance
- Continue to expect an increase in revenue to approximately £5bn and in Adjusted operating profit margin to approximately 6.3% by the end of 2012*
* excluding material acquisitions, disposals and currency effects, based on 2008 exchange rates