Analyst Views: Were Serco’s full-year results in line with your expectations?
SAM THOMAS | CANTOR FITZGERALD
The results were disappointing, as we expected. Pre-tax profits decreased around two per cent to £254.4m, below consensus of £258.7m. While we welcomed Friday’s announcement that Soames would become group chief executive, he will have his work cut out. Serco is in need of serious repair.
MIKE ALLEN | PANMURE GORDON
Final results from Serco are broadly in line with our expectations, with the key positive its decision to grow the dividend from last year, which was not in our forecast assumptions. We do not detect much change in the outlook or guidance for 2014 and maintain a neutral stance for now.
JONATHAN JACKSON | KILLIK & CO
The performance on cash flow was disappointing, with free cash flow down to £84.8m. However, the group has raised the dividend by 4.5 per cent to 10.55p. Although last week’s appointment of Soames is a positive announcement, we remain negative on the short-term outlook.