Business
Closed period trading update
Closed period trading update.
About this update from Serco Group Plc
[{"type":"text","content":"\n \n \n \n Closed period trading update; 2022 slightly ahead of previous guidance, 2023 expected to be in-line with consensus.\n \n \n \n \n \n \n \n \n \n 15 December 2022\n \n \n \n \n \n \n \n \n \n Serco today provides its scheduled closed period update of trading for the 2022 financial year, together with its initial outlook for 2023.\n \n \n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n ·\n \n Revenue:\n \n expected to be around £4.5bn in 2022, slightly above 2021, despite a reduction of £480m of Covid-related revenues. Revenue excluding Covid and currency expected to grow 10%.\n \n \n \n \n \n \n ·\n \n Underlying Trading Profit:\n \n expected to be around £235m, up £5m on previous guidance.\n \n \n \n \n \n \n ·\n \n Order intake:\n \n expected to be at least £4.0bn in 2022. Our North American Defence business has had a particularly strong year for order intake.\n \n \n \n \n \n \n ·\n \n Strong financial position:\n \n Adjusted Net Debt expected to be around £220m at year end, 0.8x net debt:EBITDA.\n \n \n \n \n \n \n ·\n \n Employee support:\n \n significant pay increases and additional one-off payments made in 2022 to help with increased living costs, as well as further financial and non-financial support.\n \n \n \n \n \n \n · \n \n Initial guidance for 2023:\n \n Underlying Trading Profit expected to be similar to 2022 at around £235m, in line with analysts' consensus*.\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Commenting on today's update, Rupert Soames, Serco Group Chief Executive, said:\n \n \n \n \n \n \"2022 will turn out much better than we expected at the start of the year as strong growth across the business largely replaced Covid contracts. Revenue is expected to be 8% higher and Underlying Trading Profit around 20% better than we anticipated when we first gave guidance in December 2021. To deliver this in the midst of such a challenging geo-political and economic backdrop underlines the strength of our business-to-government platform. Customers across the world continue, as they did during the pandemic, to turn to Serco as a trusted and capable partner to help them deal with the challenges they face delivering public services.\n \n \n \n \n \n I will be retiring from the Board and standing down as Group Chief Execu...