Serco profits up 30%

26th Feb 2010 07:04

Outsourcing group Serco has increased the dividend by a quarter as it ramped up profits by almost a third in 2009 and ended the year with a record order book.Profit before tax for the 12 months ended 31 December hit £177.1m, up from £136.1m in 2008, on revenue up 27.1%, or 20.8% excluding currency, to £3.97bn.Civil Government revenue grew by 38% to £1.56bn, representing 39% of group revenue, while defence revenue grew 29.8% to £1.02bn, about 26% of group revenue.Operating profit rose by 31.1% to £216.5m and adjusted operating profit margin improved 45 basis points to 5.74%, excluding currency effects.It still expects an increase in revenue to approximately £5bn and a 6.3% rise in adjusted operating profit margin by the end of 2012.The order book of £17.1bn at 31 December 2009 was better than the £16.3bn reported at the end of the previous year."Serco delivered a very strong performance in 2009, and has entered 2010 with a record order book and significant opportunities in the UK and internationally," said chief executive Christopher Hyman.A final dividend of 4.4p a share makes a total dividend for the year of 6.25p, up from 5p in 2008.