British BPO Serco forecasts big profits hike this year
Thanks to improved trading and tighter cost control, British outsourcing company, Serco, expects a 30-40% hike in profits this year. The positive growth in earnings could bring the firm’s battered shares up by as much as 15%, a welcome boost for Serco. The company has been hit by the knock-on effect of the collapse of rival Carillion at the start of the year, and major difficulties at its peers Capita and Mitie. Chief executive Rupert Soames attributed the good performance to the company’s proper execution of its plans. Serco now expects underlying trading profits of GBP90-95 million (US$118-124 million), well above last year’s GBP69.8 million. It also sees strong revenues at about GBP2.8 billion, beating market expectations. Serco provides public services ranging from running prisons and providing border security, to operating ferries and trains, and managing healthcare services, pay slip processing and cleaning services.
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