Business
Trading update
Trading update.
About this update from Serco Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3106S\n Serco Group PLC\n 15 November 2021\n \n \n \n \n Trading update\n \n \n 15 November 2021\n \n \n \n \n \n Serco today provides an update to 2021 guidance, following stronger than expected recent trading.\n \n \n \n \n \n Recent trading\n \n \n Trading has been stronger than we expected in recent months, and we now expect revenue to be around £4.4bn, and Underlying Trading Profit to be not less than £225m. Several factors have driven this improved performance, most of which are unlikely to repeat. First, in the UK and Australia, volumes of work related to Covid-19 support to governments have been higher, and have continued for longer, than we anticipated. Second, a number of contracts across the business have performed better than we expected, notably immigration-related contracts in the UK and Australia, and our healthcare insurance eligibility services contract (CMS) in the United States, where the decision of the Biden administration to extend the open enrolment period has resulted in additional volumes. Finally, a number of commercial discussions that we had expected to complete in 2022 are now anticipated to be finalised in the current financial year. Cash generation has also remained strong. \n \n \n \n \n \n Recognising the extraordinary efforts of our colleagues around the world and the difficulties experienced by many as a consequence of the pandemic, we will be making an ex-gratia payment to around 52,000 employees, as we did in 2020, and in addition we will be making a significant one-off commitment to our recently established Serco People Fund. The fund provides cash and other support to colleagues who would benefit from a little extra help at this difficult time. Together, these initiatives will cost the company around £10m in the current year. \n \n \n \n \n \n Our revised guidance for 2021 is set out below:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2020\nActual\n \n \n \n \n 2021\nPrior guidance\n \n \n \n \n 2021\nLatest guidance \n \n \n \n \n \n \n Revenue\n \n \n \n \n \n \n \n \n \n \n \n £3.9bn\n \n \n \n \n ~£4.3bn\n \n \n \n \n ~£4.4bn\n \n \n \n \n \n \n Organic sales growth\n \n \n \n \n \n \n \n \n \n \n \n 16%\n \n \n \n \n ~6%\n \n \n \n \n ~10%\n \n \n \n \n \n \n Un...