Serco sees significant opportunities

15th Nov 2010 07:13

Serco, the outsourcing company that recently got a telling off for asking suppliers to subsidise the group's contribution to the government's spending cuts, is on track to deliver on its financial guidance for 2010.At the half year Serco had an order book of £16.7bn, since when it has been awarded £2.3bn of contracts, bringing the total for the year to date to £4.5bn, comprising signed contracts valued at £3.7bn and preferred bidder appointments valued at £0.8bn. The company reiterated previous guidance of an increase in revenue to around £5bn and a rise in adjusted operating profit margin to about 6.3% by the end of 2012.The company said that in the current economic environment, there remains strong global demand for the efficient delivery of essential services which drives significant opportunities for Serco in both existing and new markets. This, and its operational and financial performance during the year, supports the company's expectation of achieving strong organic revenue growth in 2010 and making further progress towards its 2012 margin guidance."Internationally, I am ... delighted at the progress we are making in building home markets in the US, Australia and the Middle East. These geographies offer significant potential for sustained growth in the medium and long term," said Christopher Hyman, group chief executive of Serco.