Serco Group PLC (LON:SRP) said it expects “continued demand” for some of its services during the coronavirus pandemic.
The firm, which provides public services in over 20 countries, hired 2,000 new people in the UK alone to support contact centres for citizen services.
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It also saw “unprecedented” demand in hospitals worldwide for cleaning and staffing services.
However, it “will take some time” to figure out the impact of the outbreak on accounts and mitigation plans.
The FTSE 250-listed group said it will not propose a final dividend for 2019, saving £12mln, while it will stop directors’ bonuses, defer taxes and accept state aid for furloughed employees.
According to Peel Hunt, these measures will save around £60mln in the second quarter.
"Serco faces Covid-19 from a position of relative strength, with a solid balance sheet, plenty of liquidity and a focus on the delivery of essential frontline public service," analysts commented.
Organic revenue growth in the quarter to 31 March is estimated to have gone up by 10%.
The period ended with £215mln in net debt, £508mln of committed credit facilities and committed headroom of £286mln.
Shares were flat at 119.91p on Thursday morning.
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