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36% increase in profit
75% reduction in net debt
20% Increase in revenue
25% higher order book
Dividend is back
This is a mother of all update and should catapult us to 200p!!
This acquisition IMO is surely transformational move - i n how SRP should be reviewed in the City, DYOR , the Sp was smashed after the loss of the nuclear sub deal October ish, since then two acquisitions that more than compensate for that and we are still punished. The quality of WBB is easy to read, to - Acquire WBB, Strengthening Presence in High-End Consulting Services to Defense Markets Combination to expand Serco capabilities in advanced weapons acquisition, program management,war gaming, machine learning,cyber security, and data analytics and mission support services. This is a superior added value move and shows the exercise of cash generated in an exceptional year during the pandemic, TO BE FOLLOWED by a BETTER 2021 post acquisitions. Cash enough to restart dividends and a get a re-rating. DLA DYOR I'm in and have been in since the last collapse. GLA
This is why its so bad lol lol Watch this video on the attitudes of the Staff
https://www.youtube.com/watch?v=Gv5S50AwL94&fbclid=IwAR2Ng3B7L5QKoK8BrsRSN7uAOiFY9rNtzp9q4CC-TeBsgneLcj1cRloT_3Y
Bought more today... the train has started to move forwards....hope it speeds up soon.GLA
I am feeling the same, this company doing great business by helping the govt by helping in managing the tests etc by providing extra staff...plus the massive share buy back...they have the trading update on feb 26th.
Loads of reasons be be in this company share....Hoping for a jump soon.
I too was puzzled by the reaction of the market share price , to the share buy backs
Ditched this for GFRD and very pleased, funny how the price stays at this level while they are buying back, someone has to input the algo for this, just more legalised manipulation, wake up FSA or better still Robinhood.
This has been slipping for the past month and bought in at 123p. Hugely regretting it. when will see a rebound up!?
Surely SRP due a decent bounce soon. Is it being held back to enable the company to buy back cheap shares?
Market jitters.
Back below 120p not good and looking likely to keep drifting while SRP snap up more shares in the buy back
Having seen the tender doc for covid surely serco will get further related contracts?
Hoping we see 160p this year again but it will likely be slow and steady rise unless the announce some tasty new contract wins. Great long term buy, hold, add share
Never much said on this board,so thought would reply and post which rarely ever do,
bought in a year ago around 160 then 140s
Expect to make a profit this year Serco going along very nicely.
Hello - anybody out there?
The buy back continues - nice to see the climb slow and steady - would be great to see a few RNS of contract wins
Whats peoples target?
GLA
Fingers crossed for tmrw and a bit more Green
GLA
Loads of small sells this morning. I’d have thought that all of this COVID uncertainty strengthens our position?
I have EPS consensus at a touch over 8 pence for this year so
that puts Serco on approx 15 X currently, allowing a small EPS increase
for 2021 gives approx 14 X - that's guessestimating on the initial 2021
outlook given today.
Prior to today's update, 2021 guidance was at 8 pence on EPS,
allowing for 9 pence × 14 gives £1.26.
Remember the MOD contact being taken back in-house is
a very lucrative one, they detail the numbers in the 2 November RNS
FatP's where do you get the 14 future PE ratio, shares in issue 1.23bn then the buy back of £40m and next year No Net debt Interest savings, eps +10p £165m . Most stocks face lockdown, Brexit border issues will provide a huge long term oppo here as we leave the bosom of Europe . Cash Generation superb - BOD played this divi decision correct given the grave Health situation. We are held down, then you get other loss makers flying on juice - don't make sense. This will come right - as with G4S takeover on large multiples - the market is there. They might have to off load Prison contracts, we have the cash (Not debt) to acquire soon,
Quote - The G4S sale to Allied Universal at 245p a share could benefit more people than just the security company’s shareholders. The Times reported that Allied will soon sell off its government contracts such as private prisons, immigration centres and offender tagging operations. Each would be tempting for Serco, whose shares may respond today. Limited downside Brexit deal or not, will permanently be border controls & - Deal or no deal and increasing govt regs all round post Brexit + increased MOD budget. HNY GLA
Proactive investors
Serco Group PLC (LON:SRP), the company running large sections of the UK government’s heavily criticised COVID-19 test and trace scheme, confirmed it expects profits to grow strongly in 2020.
Revenues and margins generated by support for work on UK NHS Test & Trace had helped the FTSE 250 group to be a net gainer during the crisis, it said, with increased 'citizen services' and immigration work for the government also offsetting downturns in transport and leisure and higher costs in prisons and healthcare.
Serco added it is to pay a bonus of £5mln or £100 each to staff for their efforts over the past year, while some £3m in furlough payments will be returned to the government along with £38m in deferred taxes.
For the year to end December 2020, revenues are expected to rise by 19% to £3.9bn, which is in line with previous forecasts and reflects organic growth of 16% while underlying trading profits are forecast to increase by 35% to between £160-165mln, again in line with previous guidance.
Cashflow has also been strong, said the group, with adjusted net debt expected to be less than £100mln at the year-end with ample liquidity, but there was no restoration of the dividend due to the uncertainty over the second wave COVID-19 infections.
The initial outlook for 2021 currently is for revenue and underlying profits to be slightly higher than 2020, Serco added, reflecting a similar performance for the existing business and a small increase from the acquisition of Facilities First in Australia announced today.
Rupert Soames, chief executive, said: “The overall outcome is a robust business performance in 2020, ahead of the expectations we had at the beginning of the year.”
Separately, Serco also announced the acquisition of Facilities First in Australia for A$76.5mln (£43mln) and success in its rebid for the contract to run Acacia Prison also in Australia.
That contract is worth A$445mln (£250mln) for an initial five-year term and up to A$1.4bn if it runs for the full fifteen years.
Serco also announced the retirement of chief financial officer Angus ****burn who will be replaced by Nigel Crossley.
Broker Peel Hunt said it believes Serco will ‘emerge from Covid-19 in a stronger competitive position, with an enhanced reputation with its customers, its operational capacity and capability intact and a strong balance sheet and order book’.
The broker has a buy rating and 162p price target.
132-148, not 140 sorry
There is a nice gap to fill 132-140 so hoping it slides into that zone, brexit should boost this stock
Well I contributed to that.
Had a glance this afternoon at the buy and hold case -
Approx 14 X for modest 2021 earnings growth estimates
is about fair(ish).
It's just a pity the MOD took back that contract in-house.
Serco looks at lesst worth watching, low debt, small buy back to come.
Sell on news and profit takers early on muted the initial 5% rise but it seems to be settling now. Very safe hold at this price. Hopefully it will go on a run back up, it should surely be back to £1.70 by results in Feb. And really Should be higher based on the year on year growth.
hope to see above 130 by this Friday
All looks very good but the market luke warm so far. Strong buy and hold for 2021 though