- Serco has increased its forecast for full-year adjusted operating profit to approximately £270 million, up from a previous expectation of £260 million. Analysts estimated around £258.3 million.
- The company expects free cash flow to reach approximately £170 million, a significant increase from a prior expectation of £130 million. The market estimate was about £139.3 million.
- Revenue expectations remain steady at around £4.9 billion, close to the market estimate of £4.88 billion.
- Organic sales growth is projected at approximately 1%, slightly above the market estimate of 0.97%.
- Mark Reid has been appointed as the Group Chief Financial Officer (CFO), succeeding Nigel Crossley, who is retiring.
- Serco’s order intake is robust, with around £5.5 billion in contract awards, indicating a strong book-to-bill ratio of at least 110%.
- Approximately two-thirds of the contract awards are in the defence sector, with a focus on the UK and North American markets.
- The appointment of new North American and UK & Europe CEOs is intended to enhance international experience and concentrate on growth.
- Serco successfully completed a £50 million share buyback program.
- Current analyst recommendations for Serco include 7 buy ratings, 3 hold ratings, and 1 sell rating.
A look at Serco Group PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about the long-term outlook for Serco Group PLC, a company that provides outsourcing services globally. Smartkarma Smart Scores indicate a solid performance for the company, with a Momentum score of 5, reflecting strong ongoing upward trends. While other scores such as Value, Dividend, Growth, and Resilience are at a moderate 2, showing stability across key factors. This suggests that Serco Group PLC is well-positioned for sustainable growth in the future.
With a focus on managing facilities, projects, technological systems, and various critical services for governments and corporations worldwide, Serco Group PLC is a key player in the outsourcing industry. The company’s ability to maintain a balance between various factors like value, growth, and resilience alongside a strong momentum score highlights its potential for continued success and stability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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