Serco awarded train contract May 28, 2014 SERCO, the scandal-hit outsourcing firm, has been awarded a 15-year contract to operate the Caledonian Sleeper service train from London to Scotland. The FTSE 100 firm, which was accused of overcharging on a previous and unrelated government contract, will earn up to £800m in revenue over the contract period, of which £180m will be in [...]
What you need to know before the open May 28, 2014 With the S&P 500 and Dax posting record highs yesterday, today's expected to see a positive open for European markets. With no significant US data, focus will be on German unemployment, which could push the Dax towards to 10,000 level if it continues to come down. Market expectations that the European Central Bank will instigate [...]
Serco awarded Caledonian Sleeper franchise May 28, 2014 International service company Serco, has been chosen to manage a 15-year franchise for the Caledonian Sleeper service, which is set to be run separately from the ScotRail franchise. Serco was selected by Transport for Scotland which aims to transform the service with over £100m being invested in new rolling stock. It is hoped that the [...]
G4S says goodbye to third UK chief in two years May 20, 2014 G4S, the tagging scandal hit security services firm, has lost its third UK chief executive in two years. Eddie Aston, who joined the contract giant from Deutsche Post DHL, has left after just six months in the role, as first reported by the FT’s Gill Plimmer. The company confirmed he left at the end of [...]
Mitie profits up 4.3pc despite disposal costs May 19, 2014 MITIE shrugged off the woes of the wider outsourcing sector yesterday by unveiling in-line results for the year, which showed a 5.2 per cent rise in organic revenue growth and a 4.3 per cent rise in pre-tax profit. The FTSE 250-listed outsourcing firm, which holds contracts with a range of organisations including Network Rail, the [...]
Analyst Views: What did you make of Mitie’s full-year results? May 19, 2014 CAROLINE DE LA SOUJEOLE | CANTOR FITZGERALD The headline numbers were broadly in-line with expectations but exceptional items are significantly higher than anticipated which raises questions over the quality of earnings. The shape of the group has changed significantly in recent years, and the business is now operating in more attractive markets. JOE BRENT | [...]
Capita on track for 2014 thanks to flurry of new contract awards May 12, 2014 OUTSOURCING firm Capita said yesterday that it feels confident of achieving growth in line with market expectations this year, after “a strong start to 2014” where it secured £1.1bn of new contracts. The FTSE 100 company was awarded contracts with Transport for London, John Lewis and the Ministry of Defence, with its bid pipeline standing [...]
Best of the Brokers for 12 May 2014 May 11, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com ARROW GLOBAL Numis thinks the debt purchaser could be a big beneficiary of Barclays’ decision to create a “bad bank”, with the potential for big acquisitions across Europe. The broker has upgraded its recommendation from “add” to “buy” and keeps a target price [...]
G4S emerging markets unit boosts growth May 7, 2014 OUTSOURCING firm G4S showed it has begun to rise from the ashes of last year’s scandals yesterday, posting strong revenue growth in emerging markets. The FTSE 100 company, which agreed to repay £108.9m to the UK government in March after overcharging on a criminal-tagging contract, said revenues had grown by 4.8 per cent in the [...]
New Serco boss kicks off with a £160m placing May 1, 2014 RUPERT Soames has started his tenure as head of Serco with a £160m fundraising to avoid a default on the outsourcing firm’s debts. Serco said worsening trading meant it was coming “uncomfortably close” to its leverage ratio limits, prompting the share placing to tide the firm over while Soames works out where to take the [...]