HOOK (dpa-AFX) - Outsourcing and support services provider Serco Group Plc. (SRP.L) announced Thursday that it expects underlying trading profit to grow 30 percent to 40% percent in 2018, and to grow in line with consensus for 2019.
In its trading update, the company said it expects underlying earnings per share for both 2018 and 2019 are likely to be a further 5-10% ahead of current consensus, principally as a result of a lower effective tax rate.
The company is slated to release its fiscal 2018 results on February 21, 2019.
The company said it expects 2018 underlying trading profit to be within the range of 90 million pounds to 95 million pounds, an outcome in line with guidance that was revised upwards in late September.
For 2019, the outlook is in line with market expectations of continued progress. This includes revenue of 2.8 billion pounds to 2.9 billion pounds, and underlying trading profit growth of mid-single digits to be within the range of 95 million pounds to 100 million pounds.
Rupert Soames, Serco Group Chief Executive, said, 'With revenues no longer reducing, cash generation turning positive and the benefit of a strong balance sheet, we are pleased with progress, and we expect further improvement in 2019. We expect to deliver another year of strong order intake in 2018, driven in particular by our international businesses, and our operations and transformation plans continue to deliver an organisation which is leaner, fitter and much stronger.'
Copyright RTT News/dpa-AFX
© 2018 AFX News
