Serco Group plc - Pre-Close Trading Update
Date : 17 December 2008
On track to deliver on 2008 expectations
Ahead of its full year end on 31 December and pre-close meetings with analysts, Serco Group plc (Serco) reconfirms the guidance given in its Interim Management Statement on 13 November that it is on track to deliver on expectations for 2008.
Serco continues to have excellent visibility over its revenues with a significant pipeline of opportunities, and remains confident of delivering double-digit revenue growth for the foreseeable future. We continue to expect, through management of our contract portfolio, efficiency programmes and selective bidding, an increase of 30 basis points in our Adjusted PBT margin for the current business in each of 2008 and 2009. Smaller and medium-sized contract wins continue to play an important role in our growth. Today we have published on www.serco.com detail on a selection of these wins in the second half of 2008, which are valued at over £400m.
Given our focus on service excellence and long-term relationships with our customers, we are well positioned to support them in the challenging economic environment by improving efficiency, reducing cost, and delivering value for money services.
In August, we announced that we had signed a definitive agreement to acquire SI International, a leading US Federal Government services contractor, for approximately US$510m (including net debt). SI International will enhance our ability to deliver integrated solutions into the US$290bn US government services market through our increased scale, deeper capabilities, improved access to higher growth areas, and broader customer relationships. The closing of the acquisition remains conditional upon Exon-Florio regulatory approval and customary closing conditions. We continue to expect the acquisition to complete before the end of 2008.
Serco will release its 2008 preliminary results on 26 February 2009.
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