30 June 2021 – trading update

The international provider of services to governments has provided a scheduled closed period trading update covering the first six months of 2021, together with updated guidance for 2021 as a whole.  Serco will be in a closed period between 5 July 2021 and publication of the interim results on 5 August.  Reported revenue growth was 19% with organic revenue growth of around 15%.  Underlying Trading Profit was more than 50% higher than the first half of 2020, due to come in at between £120m and £125m.  All four regions traded ahead of last year and Underlying Trading Profit margin is likely to be more than 5%.  There was £3.8bn of order intake in the first half and adjusted net debt is expected to be around £275m at the period end.  For the year as a whole Underlying Trading Profit of around £200m continues to be expected.  This implies a larger first half weighting but strong growth on 2020 overall.  The shares remain a BUY.