KEITH BOWMAN HARGREAVES LANSDOWN
With growth at Serco largely emanating from emerging markets such as Africa and Asia, a retreat from more pedestrian regions is understandable. Despite the recent half year trading update, which placed greater investor faith on the second half, consensus opinion remains favourable.
TONY SHEPARD CHARLES STANlEY
Serco is looking to focus on its best growth opportunities. In the past week, it has sold its technical services business to AMEC for £137m and the majority of its operations in Germany for a nil consideration. The tidying up of Serco’s portfolio could lead to some small bolt-on acquisitions next.
JO BRENT LIBERUM CAPITAL
There is nil consideration and the operations were break-even, so clearly no impact on earnings. The removal of these low growth businesses will clearly be helpful to organic growth. We are encouraged that Serco is showing good capital disciplines.