Serco issues profit warning

29th Apr 2014 07:04

- Another profit warning after trading deteriorates- May have to raise capital through share placing- Will issue further update this weekFTSE-250 support services firm Serco has issued a fresh profit warning and indicated it may have to raise capital through a share placing just days before new Chief Executive Rupert Soames takes up his role. The embattled outsourcing firm, which operates prisons and welfare to work programmes for the UK government, issued a statement after the London Stock Exchange close on Monday that said trading has been more challenging than expected. "It has now become evident in the light of recent performance that we may need to reassess the level of risk implicit in the assumptions underlying our forecasts. "This may in turn require a material downward revision to expectations, and for us to review the appropriateness of our financing position. We will, therefore, be consulting with shareholders regarding the possibility of strengthening the balance sheet through an equity placing."Serco said a further announcement will be made as soon as possible this week.CJ