Serco Group PLC (LON:SRP) has said it performed well in the first half, and remains on track for the full-year, with strong order intake although the outsourcing group remains cautious over “unpredictable markets”.
In a pre-close season trading update, the FTSE 250-listed firm said it expects to report first-half revenue of approximately £1.5bn, around an 8% decline on a year earlier.
It added that underlying trading profit would be around £35mln for the first-half, down from £51mln for the first half of 2016 year but not dissimilar to the second half figure of £35mln.
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The group said: “Order intake to date has been very strong at around £2.4bn, which includes our recently-signed contract worth £1.5bn to operate Grafton prison.
“With £1.6bn booked in the second half of 2016, which included £450m for Barts NHS Trust, order intake for the 12 months to 30 June 2017 will be around £4bn.”
Serco said its full year guidance for revenue of approximately £3.1bn and underlying trading profit of between £65mln and £70mln remains unchanged.
However, it said movement in currency changes since February may, if sustained, have a small negative effect.
The company remains “sensibly cautious”
Rupert Soames, Serco’s chief executive, said: "The business has performed well in the first half, which keeps us on track for the full year.
“The most striking element is the order intake, which for two successive periods has been very strong, totalling some £4bn in the last twelve months.
“However, over the last six months the environment in several of our markets has become markedly more unpredictable, so we remain sensibly cautious.”