Serco backs 2023 guidance as trading profit, revenues rise

28th Feb 2023 08:00

(Sharecast News) - Outsourcer Serco hiked its dividend on Tuesday as it reported a rise in full-year profit and revenue despite a decline in Covid-related work.

In the year to the end of December 2022, underlying trading profit was up 4% at £237m. Revenues were ahead 2% at £4.5bn. Serco said this was despite Covid-related revenues reducing by £480m. Excluding Covid and currency, revenue grew 11%.

Serco hailed a strong performance from its international portfolio, pointing out that three quarters of underlying trading profit were derived from outside the UK.

The order book grew 8% to £14.8bn and the dividend per share was lifted 19% to 2.86p.

Serco backed its guidance for 2023, saying it continues to expect underlying trading profit to be similar to 2022 at around £235m.

Chief executive Mark Irwin said it had been "another year of profound global challenges", with the war in Ukraine, high inflation and the lingering effects of Covid.

"Against this very difficult backdrop Serco has delivered another year of strong operational and financial performance, growing revenues and profits despite Covid work coming to an end," he said.

"As well as a strong and consistent financial performance, we move out of the Covid period, with a business that has stronger customer relationships, improved geographic diversity, more resilience, and greater opportunities focused on impacting a better future for people, place, and planet."