Serco posts strong figures

26th Aug 2009 07:23

Outsourcing specialist Serco said its strong performance in the first half, and the good start to the second period, supports its expectation in achieving its financial guidance for 2009 and beyond.The group, which recently won the contract to operate the new London Cycle Hire Scheme, saw pre-tax profit for the half-year increase 32.8% to £93.4m on revenue that rose to £1,950m from £1,491m. The strong results allowed the firm to hike dividends by 25% to 1.85p per share.Its order book stands at £16.7bn at 30 June 2009 (£16.3bn) at 31 Dec 2008. It has already in the second half signed or been appointed preferred bidder on around £0.5bn of further contracts.In 2009, it expects to deliver double-digit revenue growth and a 30bps increase in its adjusted PBT margin, which excludes the recent acquisition of SI International. The addition of SI International is anticipated to increase its 2009 revenue growth by approximately 10%. The cycle scheme awarded by Transport for London is a six year contract valued at approximately £140m. The group will operate and maintain 6,000 bicycles for hire in Central London and 400 docking stations offering over 10,000 docking points."This has been a strong first half. We were awarded record level of contracts, entered a number of important new markets, and delivered a strong financial performance," said chief executive Christopher Hyman."Given the economic challenges our customers are facing, they are making transformational changes and asking for our support in delivering high quality, essential services while improving productivity," he added.