Serco shares soar after raising profit outlook on demand for Covid services
Outsourcing giant Serco today raised its 2021 profit outlook by £15m to around £200m, sending the company’s share price up by 4.5 per cent.
Serco, which has outperformed the wider UK outsourcing space, said that it expects stronger demand for its Covid-19 services this year.
The firm is set to benefit from its focus on the public sector, including the country’s national test and trace programme related to the pandemic.
Serco said its testing and tracing volumes in the UK have continued to be strong and that demand for these services is set to continue for longer than anticipated.
“All of our four divisions have traded in-line or ahead of their budgets in the first five months of the year,” the company said.
Serco said Vivo Defence Services, its joint venture with energy and services firm Engie SA, was awarded defence infrastructure contracts worth £900m.
It added that the contracts would not have any material impact on its 2021 profit.