Serco Group plc - Pre-Close Trading Update
Date: 29 Jun 2009
On track to deliver 2009 guidance
Ahead of its half year end tomorrow, Serco Group plc (Serco) releases the following update on first half performance.
We remain on track to deliver on our guidance for 2009, and we continue to see significant opportunities to help our customers deliver value for money services in the current challenging economic environment.
In the first half, we have seen a high level of activity in bidding across all our markets and regions. At our AGM on 12 May we announced that we had signed contracts with a total value of £1bn. Since then, we have announced that we have been selected on over £1bn of further contracts, including wins valued at £245m for Air Traffic Services at Dubai Airport and £140m for Plymouth Hospitals services, and our selection as preferred bidder for three Flexible New Deal contracts in the UK worth up to £500m.
We have today announced that we have signed an AUS$370m (£180m) contract with the Australian Government's Department of Immigration and Citizenship to transform its immigration detention centres.
We are making excellent progress with the integration of SI International, and we now have a strong foundation for growth in the world's largest government services market.
In summary, we have seen a sustained high level of activity throughout the first half, trading remains strong, and we continue to generate good cash flow. In the first half, we expect a modest increase in working capital investment compared to the same period last year driven by the significant number of contract start ups and transitions, and acquisition integration.
Our broad capabilities and the flexibility we have in deploying them, together with our pipeline of opportunities in existing and new markets and our substantial order book, support our expectation of continued strong performance.
Serco will release its 2009 half year results on 26 August 2009.
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