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2009 Half Year Results

Date: 26 Aug 2009

Record contract awards and strong financial performance

Serco Group plc - 2009 Half Year results

6 months to 30 June

2009
2008
% change
Revenue
£1,950m
£1,491m
up 30.8%
Adjusted operating profit
£110.0m
£76.8m
up 43.2%
Operating profit  £101.1m £72.3m up 39.8%
Profit before tax
£83.4m
£62.8m
up 32.8%
Adjusted earnings per share
14.02p
10.18p
up 37.7%
Earnings per share
12.62p
9.35p
up 35.0%
Dividend per share
1.85p
1.48p
up 25.0%
Group free cash flow
£50.7m
£33.0m
up 53.6%

Increasing levels of activity in existing and new markets

  • Record level of contract awards: signed contracts valued at £2.1bn and appointed preferred bidder for £1.4bn of contracts
  • Excellent progress with SI acquisition integration: strong foundation for growth in US market
  • Win rates of one in two for new bids and 90% of rebids
  • Good start to the second half, with a further £0.5bn of contract awards

Strong financial performance

  • Revenue growth of 30.8%; 21.2% excluding currency; 10.8% excluding SI and currency
  • Adjusted operating profit margin growth of 49bps; 38bps excl. currency; 20bps excl. SI and currency
  • Group free cash flow increase of 53.6% to £50.7m
  • On track to deliver 2009 guidance

Growing order book supports excellent visibility

  • Order book of £16.7bn at 30 June 2009 (£16.3bn at 31 Dec 2008)
  • Continued high visibility of planned revenue: 99% of 2009, 86% for 2010 and 72% for 2011

Demand for efficient delivery of essential services driven by global economic climate

  • Global economic environment driving demand for fundamental improvements in the delivery of essential services in existing and new markets
  • Substantial opportunities to address our customers' needs through our high quality service delivery and flexible and agile deployment of our increasing capabilities
  • Considerable opportunity pipeline of £27bn, and a disciplined and selective approach to bidding

Christopher Hyman, Chief Executive of Serco Group plc, said: "This has been a strong first half. We were awarded record level of contracts, entered a number of important new markets, and delivered a strong financial performance. Given the economic challenges our customers are facing, they are making transformational changes and asking for our support in delivering high quality, essential services while improving productivity. These opportunities, across all our markets, and our growing capabilities, underpin our confidence in the future."

Note: Adjusted operating profit and Adjusted earnings per share shown above are before amortisation of acquired intangibles as shown on the face of the Group's income statement and the accompanying notes. Group free cash flow is free cash flow from subsidiaries and dividends received from joint ventures and is reconciled in Section 3 of the Finance Review.

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Last Updated: 26 Aug 2009