HOOK (dpa-AFX) - Serco Group plc (SRP.L) reported Wednesday that its first-half profit before tax plunged to 6.7 million pounds from 25.6 million pounds last year.
On an after tax basis, the company recorded a loss attributable to shareholders of 1.7 million pounds, compared to profit of 14.5 million pounds a year ago. Loss per share for the first half was 0.15 pence, compared to profit of 1.30 pence last year.
Adjusted earnings per share were 2.53 pence, compared to 2.32 pence a year ago. Underlying earnings per share were 2.62 pence, up from 1.84 pence last year.
Operating profit fell 46 percent to 17.2 million pounds. Underlying trading profit grew 35 percent to 50.6 million pounds.
Revenue increased 8 percent to 1.48 billion pounds from last year's 1.37 billion pounds. Revenue growth at constant currency was 6.5 percent.
Organic growth was 4.2 percent, driven by strong performances in the Americas and AsPac divisions. The company noted that this is the first time Serco has reported organic growth since 2013.
Order intake was very strong at 3.3 billion pounds, already exceeding revenue forecast for the whole of 2019. Order book increased by 2.0 billion pounds to 14.0 billion pounds, reflecting the strong order intake.
The company said its Board has not declared an interim dividend for 2019.
Looking ahead, the company continues to expect organic growth to accelerate from this year's 4 percent to around 5 percent in 2020.
The company said its recent strong order intake gives it confidence to grow faster than market for at least the next two years.
In London, Serco shares were trading at 144.20 pence, up 3.15 percent.
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© 2019 AFX News
