FTSE 250 group expects to hit £1.5bn in revenue for the first half, an 8% decline year-on-year
Companies: Serco Group plc
Shares in Serco Group fell 2.5% on Friday after the firm confirmed half-year revenues were 8% lower compared to the comparative period with underlying profit down 31%, after benefitting from some non-recurring trading items last year.
The FTSE 250 firm said it expected revenue to be around £1.5bn and underlying profit of £35m, with order intake healthy and £1.6bn booked in the second half of 2016 and intake for 2017 at around £4bn.
Rupert Soames, the firm's CEO, said the business had performed well in H1 and was on track for the full year. He added that the most striking element was the order intake, which had been strong for two successive periods totalling £4bn. However, he remained cautious about the macroeconomic climate:
"...over the last six months the environment in several of our markets has become markedly more unpredictable, so we remain sensibly cautious."
Mr Soames said the firm's goals for the year were unchanged and stressed the Board was working hard to deliver its "transformation" goals.