Serco Group Performance Update

by Warren Seah

Update on Serco Group’s Financial Performance

As of February 29, 2024, Serco Group PLC reported a noteworthy increase in its pretax profit for the fiscal year, reaching GBP247.0M compared to the previous year’s GBP196.8M. Alongside this positive development, the company also experienced a significant rise in revenue, climbing to GBP4.87 billion from GBP4.53 billion, primarily driven by growth in the immigration and defense sectors.

Strong Financial Performance and Forward Guidance

The company’s underlying operating profit, excluding exceptional costs, stood at GBP249 million as opposed to GBP237.0 million previously. Encouragingly, Serco Group reaffirmed its guidance for both revenue and profit in 2024, aiming for a robust underlying operating profit of GBP260 million for the year ahead.

Shareholder Returns and Strategic Initiatives

Demonstrating its commitment to shareholders, Serco Group announced a final dividend of 2.27 pence per share, resulting in a 19% increase in the full-year dividend to 3.41 pence. Additionally, the company revealed its plans to launch a GBP140 million share buyback program to further enhance value for its investors.

CEO’s Strategic Focus for 2024

Mark Irwin, Chief Executive Officer of Serco Group, emphasized the company’s intensified focus on service excellence, efficient conversion of opportunities, ensuring the safety and productivity of employees, and advancing the technology integration within the business. These efforts are all aimed at achieving the company’s medium-term goals and aligning with its long-term success.

For more information, contact Serco Group directly.

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