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Seems yesterday's results story still strikes a chord with investors today. That's good as often initial, on the day enthusiasm drifts subsequently. I don't think this is a quick turnaround and no way are we powering up back to 600 but a quid is a decent price with a lot more upside than downside in the medium term. Chairman Soames seems to be getting it right.
Morning all nice lift for Serco today.Long may it continue....
Serco fail to win £900m ferry contract...
Still a duff share
Underlying Trading Profit of £96m, ahead of our guidance provided at the time of the Rights Issue of £90m. · Reported Trading Profit of £138m, significantly higher than Underlying Trading Profit, benefiting from £21m net release of Onerous Contract Provisions and Contract and Balance Sheet Review items, £9m one-off profit on a contract termination and £12m beneficial impact of assets held for sale. · Exceptional operating charge of £188m, of which £166m are non-cash losses on disposals and impairments. · Free Cash Outflow of £16m, better than previously anticipated. · Net Debt reduced by £605m to £78m, as a result of the Rights Issue and offshore BPO disposal proceeds. Net Debt:EBITDA around 0.5x. · £1.8bn total value of signed contracts, representing more than 700 individual customer orders of which 10 are worth more than £50m each. · Pipeline of larger new bid opportunities increases by approximately £1.5bn to £6.5bn. · Operating costs reduced by over £330m, broadly in proportion with revenue reduction. · Guidance for 2016 reiterated - Revenue expected to reduce to approximately £2.8bn and Underlying Trading Profit to around £50m as a result of BPO disposal and contract attrition.
On securing the 5 year £166m prison contract down under. Now, try not to let any of them escape this time!
Such a bargain that Mr Woodford is binning it.
This is a steal at this price, should definitely see a bounce from this level.
Folks read my previous comments on this share ..
Shorts closing before results!
glad i did so now 83p today not good from highs of nearly £8 couple of years ago. I am no expert by any means but think this could have further to fall so i'll keep old of my cash a little longer got to turn at some point
Business is making the right steps to overcome the recent bad publicity and cost spirals, overall offers a good play.
Should push on from these levels, can see 110 by Feb
I see that the shadow of Mr Lyons, former chairman, (on the losing side when Santander bailed out Abbey National and chairman of the highly indebited Towergate) continues to cast its spell. Good to know that his CBE was well deserved and, despite the loss incurred by shareholders, is comforted by his substantial pensions.
SRP Serco Group, Cracking update............ SRP Serco... Reported Trading Profit in 2015 likely to be significantly higher than Underlying Trading Profit. http://www.investegate.co.uk/serco-group-plc--srp-/rns/trading-update/201512070700081533I/
SRP Serco Group Updated with this mornings full note. http://content.screencast.com/users/marketsniper/folders/Default/media/cef08cf1-41a8-47ea-9bcf-a319b8a99047/srp%202.jpg <b><u>Jefferies Full Note This Morning.BUY TARGET 157p</b></u> <b><i>We upgraded to Buy in September as we felt risk/reward had become favourable. According to The Financial Times this contrarian call was “very brave” but two months on, and ahead of a year end trading update, our conviction is increasing. Headwinds have not fully abated, but the IMS will highlight the significant progress made by new management in 2015. FY16E attrition guidance could increase to £400m. Earlier this year, Serco guided to £350m revenue attrition in FY16E. In our view, this could be revised to c£400m as the original figure included £50m from Intelenet (which drops out as it will be sold before year end) and the following contracts have been lost or lapse: US National Benefits Centre (£35-40m annual revenue); Virginia Department of Transport (c£35m annual revenue, winding down towards a May 2016 exit); complex cases child maintenance (£30m annual revenue which runs off over three years as existing cases are resolved). Disposal update. Judging by Blackstone’s recent financing activities the Intelenet acquisition is on track to complete before year end. This leaves UK leisure/waste as Serco’s sole remaining non-core asset, but novating its contracts to individual legal entities could take until mid-2016. Serco’s balance sheet will have been de-risked by then, and we think its turnaround will have a firmer footing so there may be a case for retaining this public sector facing unit. Positive cashflow developments. Serco recently reached a favourable agreement with the Australian government to amend its contract to provide in-service support to Armidale Boats. This is the largest component of the £447m onerous contract provision and resolving loss makers would lead to material FCF upgrades. On recovered earnings, Serco has an 8% FCF yield. Trimming LFL revenue assumptions; unchanged EPS. We now anticipate -8% and +2% organic revenue growth in FY16E and FY17E, respectively (previously -5% and +3%) due to higher attrition, but our EPS estimates remain unchanged for two reasons: 1) as we highlighted in our September note, management feel more in control of cost efficiencies; 2) we assumed that UK leisure/waste would be sold in late 2015 but have reconsolidated until any transaction is clearer.</b></i>
<b><u>Serco Group plc 41.4% Potential Upside Indicated by Jefferies International Posted by: Ruth Bannister 1st December 2015</b></u> Serco Group plc using EPIC/TICKER code LON:SRP had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘BUY’ today by analysts at Jefferies International. Serco Group plc are listed in the Industrials sector within UK Main Market. Jefferies International have set their target price at 157 GBX on its stock. This indicates the analyst now believes there is a potential upside of 41.4% from the opening price of 111 GBX. Over the last 30 and 90 trading days the company share price has increased 13 points and decreased 14 points respectively. Serco Group plc LON:SRP has a 50 day moving average of 102.68 GBX and a 200 day moving average of 131.72 GBX. The 1 year high stock price is 188.8 GBX while the 52 week low is 89.48 GBX. There are currently 1,097,554,751 shares in issue with the average daily volume traded being 4,454,677. Market capitalisation for LON:SRP is £1,275,358,587 GBP. Serco Group plc is a United Kingdom-based provider of public services. The Company operates through six segments: UK Central Government, UK & Europe Local & Regional Government, Americas, Asia Pacific, Middle East and Global Services, which provides BPO services across the globe.
<b>Serco Group plc (SRP) Given “Buy” Rating at Jefferies Group December 1st, 2015 • 0 comments • Filed Under • by ABMN Staff</b> Serco Group plc logoSerco Group plc (LON:SRP)‘s stock had its “buy” rating reiterated by Jefferies Group in a report issued on Tuesday, MarketBeat Ratings reports. They presently have a GBX 157 ($2.36) price objective on the stock. Jefferies Group’s target price suggests a potential upside of 42.08% from the company’s current price. In other Serco Group plc news, insider Gardner,Roy A acquired 25,000 shares of the stock in a transaction dated Wednesday, November 18th. The stock was acquired at an average price of GBX 99 ($1.49) per share, with a total value of £24,750 ($37,234.84).
SRP Serco Group (international Support Services Group) todays Buy moving up nicely. 01 Dec Jefferies International Buy 111.70 157.00 157.00 Reiterates http://content.screencast.com/users/marketsniper/folders/Default/media/cef08cf1-41a8-47ea-9bcf-a319b8a99047/srp%202.jpg
not in here,but I noticed the 1 to 4 million trades aswell,maybe ii's loading up after the last 12 months sp decent,in anticipation of a reversal in that trend. just a guess,atb.
two days ago, there was a big volume, could someone explain it please ? i did not see any new RNS about fund involving it yet.
I don't t think anyone is expecting this to "bounce", given the company's own forward guidance but rather that ongoing reorganisation of the business and securing and managing of better contracts will encourage an upwards revision in the share price into the medium-term.
Anyone who thinks this share is going to bounce back is somewhat deluded..
Michael Dell's investment outfit buying in over 10%. Someone is confident.
Hello willywarmer of course there is plenty of hope here..Me thinks a good recovery next year.Who else has this expertise & experience? G4S only challenger & look what a hash they made of Olympics