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Serco Group PLC on Thursday said it expects its 2022 underlying trading profit to be ‘slightly’ ahead of previous guidance and added its 2023 results are set to be in line with expectations.
Revenue for 2022 is expected at £4.5 billion, the Hampshire-based outsourcer said, 16% above 2021’s £3.88 billion revenue, despite a reduction in Covid-related revenue.
Underlying trading profit is expected at £235 million, representing a £5 million increase on the firm’s previous guidance. It would be up 2.6% from £229 million a year ago.
For 2023, underlying trading profit is expected to be similar to 2022 at £235 million.
Chief Executive Rupert Soames said: ‘2022 will turn out much better than we expected at the start of the year as strong growth across the business largely replaced Covid contracts. Revenue is expected to be 8% higher and underlying trading profit around 20% better than we anticipated when we first gave guidance in December 2021.’
Soames steps down at the end of the year, replaced by Mark Irwin, currently CEO of Serco’s UK & Europe business.
The company expects net finance costs to fall by around 8.3% to £22 million from £24 million in 2021.
Serco shares fell 1.5% to 155.40 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News reporter
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