Connect with us

Hi, what are you looking for?


Serco expects COVID boost to fade in H2

Stock Markets35 minutes ago (Jun 30, 2021 05:35AM ET)

(C) Reuters.

By Yadarisa Shabong

(Reuters) -Outsourcer Serco said on Wednesday it expects first-half profit to jump over 50%, bolstered by its COVID-19 services for the British and Australian governments, but said those revenues would ease in the second half.

The company, which has been supporting Britain’s COVID-19 test-and-trace programme with services such as test site operations, cleaning, security and contact tracing, expects underlying trading profit of between 120 million and 125 million pounds ($173.05 million).

Serco, whose roots go back to 1929, has been led by former British Prime Minister Winston Churchill’s grandson Rupert Soames since 2014 and employs over 55,000 people globally in defence, transport, justice and immigration sectors.

The issues that Serco and the broader world face include labour shortages. Soames said it was difficult to hire lorry drivers in the United Kingdom and workers in the custodial business in Australia, where the group has seen the tightest labour market.

“I think that it’s going to be very interesting to see as the furlough scheme ends in the UK and in the U.S.. In the U.S., the labour market is pretty tight but we’re not entirely sure how that is going to work through,” he told Reuters.

Soames has led the group through a turbulent time for the outsourcing industry, which in recent years has seen the collapse of Carillion and Interserve, and now faces Brexit and pandemic-related disruptions.

Order intake at Serco, which this week extended the COVID-19 testing contract, will be nearly 4 billion pounds in the first half, a record, it said.

The company, which this month raised its annual profit target by 15 million pounds to about 200 million pounds, kept 2021 outlook unchanged on Wednesday.

About 340 million pounds of its first-half revenue, which is estimated to be around 2.2 billion pounds, will come from its COVID-19 work, compared with 80 million pounds a year earlier.

($1 = 0.7223 pounds)

Serco expects COVID boost to fade in H2

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...


Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved