Investors
Serco Group plc full year results 2020
Very strong year across global business in 2020; guidance increased for 2021.
Rupert Soames, Group Chief ExecutiveResults centre
| Title | Announcements | Presentation | Webcast | Reports | Transcripts |
|---|---|---|---|---|---|
| Annual Report 2019 | |||||
| Full Year Results 2019 | |||||
| Half Year Results 2019 | |||||
| Close Period - December 2019 | |||||
| Acquisition and Equity Placing | |||||
| Glossary |
Annual Report 2015
Full Year Results 2015
Trading Update - 7 December
Close Period Update - 1 July
AGM trading Update - 6 May
Rights Issue and Refinancing - Underwritten Rights Issue of £555m and refinancing of lending facilities - 12 March 2015
Rights Issue and Refinancing - Publication of Prospectus - 12 March 2015
Rights Issue and Refinancing - Rights Issue Prospectus - 12 March 2015
Rights Issue and Refinancing - Results of General Meeting - 30 March 2015
Rights Issue and Refinancing - Admission of Nil Paid Rights - 31 March 2015
Rights Issue and Refinancing - Results of Rights Issue - 17 April 2015
Rights Issue and Refinancing - Results of Rump Placing - 17 April 2015
Rights Issue and Refinancing - Completion of Debt Refinancing; Pro Forma Leverage and Net Assets - 30 April 2015
Key Facts Financial Year 2020
Serco delivers services to governments and other institutions who serve the public or protect vital national interests. Serco’s roots go back to 1929, and in 1988 the Group was listed on the London Stock Exchange. Now, Serco is a FTSE 250 company managing over 500 contracts worldwide and employing around 55,000 people across our operations.
Our business is focused across five core sectors, with revenue in 2020 of £3,885m or, including our share of joint ventures and associates to reflect our total scale in each sector, of £4,250m.
Revenue
£3.9bn
Free Cash Flow
£135m
Trading Profit (UTP)
£163.1m
Order Book
£13.5bn
Number of Employees
55,000+
Reported EPS
10.67p
% Revenue by Region
% Revenue by Sector
(1) Before Corporate costs
Serco’s operations are reported as four regional Divisions: UK & Europe (UK&E); the Americas; the Asia Pacific region (AsPac); and the Middle East. Reflecting statutory reporting requirements, Serco’s share of revenue from its joint ventures and associates is not included in revenue, while Serco’s share of joint ventures and associates’ profit after interest and tax is included in Underlying Trading Profit (UTP). As previously disclosed and for consistency with guidance, Serco’s Underlying Trading Profit measure excludes Contract & Balance Sheet Review adjustments (principally OCP releases or charges).Revenue
£1,777m
Trading Profit (UTP)
£57m
Revenue 2019
£1,362m
Trading Profit 2019
£39m
Group Revenue
46%
Group UTP (1)
28%
% Revenue by Sector
(1) Before Corporate costs
The division had a very strong year, and the UK had the most to cope with in terms of Covid-19, with some businesses going backwards and others growing strongly. Revenue for 2020 was £1,777m (2019: £1,362m), an increase of 31%. Reported revenue excludes that from our joint venture and associate holdings which largely comprise the operations of AWE and Merseyrail.Revenue
£719m
Trading Profit (UTP)
£33m
Revenue 2019
£621m
Trading Profit 2019
£31m
Group Revenue
19%
Group UTP (1)
16%
% Revenue by Sector
(1) Before Corporate costs
Revenue for 2020 was £719m (2019: £621m), an increase of 16% in reported currency. In Australian dollars, the main currency for operations of the Division, revenue for the year was equivalent to approximately A$1,343m (2019: A$1,137m). The weakening of local currencies against sterling reduced revenue by £14m or 2%; the organic change at constant currency was therefore growth of 18%, or £112m. The largest contributor to this growth was the AHSC defence garrison healthcare services contract in Australia, which started operations on 1 July 2019. Other notable drivers of growth were Clarence Correctional Centre, where operations commenced in July, increased activity for our immigration business and additional work with Services Australia (formerly the Department of Human Services), where increased business resulted indirectly from the impact of Covid-19.Revenue
£1,604m
Trading Profit (UTP)
£101m
Revenue 2019
£915.7m
Trading Profit 2019
£45.7m
% Group Revenue
27%
Group UTP (1)
49%
% Revenue by Sector
(1) Before Corporate costs
Our Americas Division accounts for 27% of Serco’s reported revenue, and provides professional, technology and management services focused on Defence, Transport, and Citizen Services. The US Federal Government, including the military, civilian agencies and the national intelligence community, are our largest customers. We also provide services to the Canadian Government and to some US state and municipal governments.Revenue
£324m
Revenue (2019)
£350m
Trading Profit 2019
£14m
Trading Profit (UTP)
£14m
Group Revenue
8%
Group UTP (1)
7%
% Revenue by Sector
(1) Before Corporate costs
Revenue for 2020 was £324m (2019: £350m), a decrease of 7% in reported currency. The weakening of local currency against sterling decreased revenue by £3m or less than 1%; the organic change at constant currency was also a decline of 7%. The Middle East segment has faced the largest negative impact from Covid-19 as there has been a sudden reduction in activity in parts of the transport portfolio and, unlike in the UK, limited Covid-19 response work to act as a counterbalance. There was growth in revenue from expanded services to Mashroat in Saudi Arabia and the Dubai Metro. These were outweighed by Covid-19 leading to reduced revenue on various contracts including Baghdad Air Traffic Control, health FM in Saudi Arabia and Dubai Airport facilities management. There was also a drag from the Cleveland Clinic contract, which was lost in 2019.