JULIAN CATER CANACCORD GENUITY
We are reassured by the return to organic growth of Serco’s UK business, but it is its international exposure which is likely to sustain its competitive advantage. We believe America should return to growth in 2014, and should lead to double-digit earnings per share growth in that year.
KEVIN LAPWOOD CANTOR FITZGERALD
The full-year results from Serco were a touch above our, and market, expectations. We remain buyers of the shares with a target price of 660p on account of the company’s geographical and operational diversity, which we believe puts the company in a strong position to deliver growth.
ROBIN SPEAKMAN SHORE CAPITAL
Whether the results are sufficient to keep Serco’s position in the FTSE 100 will be decided in the next day or two, but we believe that the company is evolving a stronger business model and proposition with a more solid foundation for future growth and development for the long term.