Serco gets back on track after DLR blow as profit alerts stop

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It stuck to its profit and turnover forecasts of £90 million and £3.5 billion for the full year, set out in March.

Last year, it turned off investors with four profit warnings. The shares surged 12.2p to 130.2p as the City welcomed a lack of further alerts.

It comes after a turbulent few years for the outsourcer, which admitted in November it needed to tap investors for £550 million after identifying £1.5 billion in writedowns.

Problems stem from its admission in July 2013 that it had charged the Government for tagging some criminals who were dead, imprisoned or non-existent.



Rupert SoamesSerco boss Rupert Soames (Picture: Suzanne Plunkett, Reuters)


 

Chief executive Rupert Soames, the grandson of Sir Winston Churchill, joined last May to revive the firm.

In the first half, sales will not be less than £1.7 billion the group said, down from £2 billion last year. It follows losing contracts such as with DLR.

 

Soames said “there will be bumps along the road”, but progress is under way.

Roger Johnston, analyst at Edison Investment Research, said: “The first half appears to have gone as well as expected, which is the first time that has been said for some while.”

Source Article from http://www.standard.co.uk/business/business-news/serco-gets-back-on-track-after-dlr-blow-as-profit-alerts-stop-10357928.html

July 2, 2015 |
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