HOOK (dpa-AFX) - Shares of Serco Group plc (SRP.L) were gaining around 12 percent in the early morning trading in London after the provider of public services Wednesday said it expects higher trading profit and revenues in its first half.
Further, the supplier of critical services to governments reinstated guidance for the 2020 financial year, which is higher than previously withdrawn view during the peak Coronavirus or Covid-19 spread.
In its trading update, the company said its first-half underlying trading profit would be 75 million pounds from 80 million pounds, around 50 percent higher than the first half of 2019.
The profit was driven primarily by overseas businesses including the impact of the acquisition in August 2019 of the Naval Systems Business Unit of Alion in North America.
First-half revenue growth would be around 23 percent to around 1.8 billion pounds, including organic growth of 14 percent.
The company noted that Covid-19 resulted in limited financial impact in the first half, as the losses in some parts have been largely offset by additional work elsewhere.
The company reported strong order intake of around 1.8 billion pounds.
For fiscal 2020, Serco now expects underlying trading profit between 135 million pounds and 150 million pounds. The previous outlook was 145 million pounds.
Revenue is now expected to be around 3.7 billion pounds, compared to 3.4 billion pounds to 3.5 billion pounds expected earlier.
Organic sales growth is now expected to be around 9 percent, up from previously expected 4 percent growth.
Serco will publish the first half results on August 6.
In London, Serco shares were trading at 149.52 pence, up 12.42 percent.
Copyright RTT News/dpa-AFX
SERCO-Aktie komplett kostenlos handeln - auf Smartbroker.de