Mark Eden
$SRP.L (Serco Group PLC) Trading update from Serco today. It's more encouraging news and Serco have been holding up quite well this month, but progress remains slow and they just don't seem able to garner much in the way of investor excitement about the future. I'll definitely be keeping hold of this one for a better rally but if they do publish good looking results in August and there is still little reaction, I will consider moving on from this one if there are other things of interest at that time. --------------------------------------------------------------------------------------------------------- Commenting on today's update, Rupert Soames, Serco Group Chief Executive, said: "Serco's performance in the first half underlines the trust governments around the world place in us, and our ability to respond at scale and pace to rapidly-changing requirements. We expect to deliver revenue growth in the first half of nearly 20%, and Underlying Trading Profit growth of more than 50%; just as pleasing, our order intake will be at record levels at almost £4bn, including large new contracts with the UK Ministry of Defence, the Department of Work & Pensions and the Royal Canadian Airforce. Despite being exceptionally busy responding to strong demand for our services, we also completed two important acquisitions in the United States and Australia in the period. For the year as a whole, we expect to deliver Underlying Trading Profit of around £200m, or nearly 30% growth in constant currency. Profits will be weighted to the first half, and will include contributions from the WBB and FFA acquisitions, which will enable us to absorb the impact of the end of the AWE contract, the mobilisation costs of the recently-signed DWP contract and an expected reduction in Covid-19 related activities. We also intend to take advantage of the current strong trading to temporarily increase our rate of investment in our systems platform, cyber resilience, and business development spend to respond to a strong pipeline of opportunities." --------------------------------------------------------------------------------------------------------