Serco bullish on the public sector

City A.M. Reporter
OUTSOURCING giant Serco has said it is on track with its 2011 expectations after contract wins and is well-placed to achieve future revenue targets.

Serco, which among other things runs London’s bicycle-hire scheme and Yarl’s Wood immigration removal centre, said yesterday it had won £1.6bn worth of work since the start of the year.

The group, which last month won two contracts under the government’s welfare-to-work scheme, added it was well-placed to achieve revenue of £5bn and an increase in adjusted operating profit margin to 6.3 per cent in 2012.

Revenue for 2010 was £4.33bn.

In the UK, Serco said it expected to benefit from increased contract opportunities in the medium-term as the government looks to outsource some of its national public services.

“I am pleased with the resilience the group has shown in the year to date. Despite headwinds, we expect to achieve a good financial performance and to develop the many opportunities within our £29bn pipeline,” said chief executive Christopher Hyman.