Serco Share Price (SRP)

.wealthoracle.co.uk/companies/SRP

Serco Group posted steady FY25 results this morning which were in line with upgraded guidance. Group revenue increased to £4.9bn, representing 3% growth at constant currency, supported by contract wins and expansion in defence and citizen services. Organic growth was 1%, with acquisitions contributing additional growth, partially offset by the wind-down of immigration contracts in the UK and Australia. These structural contract reductions moderated overall revenue expansion during the year. Underlying operating profit was £272m, broadly flat year-on-year but up 1% at constant currency, delivering a 5.6% operating margin, which sits comfortably within the company’s medium-term target range of 5–6%. Underlying diluted earnings per share increased 2% to 16.93p, reflecting steady operational execution despite cost pressures including higher UK national insurance contributions and increased corporate costs. The Group’s balance sheet remains strong with year-end adjusted net debt of £206m, equivalent to 0.7x EBITDA, comfortably below its 1–2x target leverage range and leaving capacity for further shareholder returns or acquisitions. And the outlook is encouraging with a high degree of visibility which is no bad thing in current uncertain times. Order intake reached £5.5bn, representing a book-to-bill ratio of 114%, while the order book increased 9% to £14.5bn, providing strong multi-year revenue visibility. Approximately two-thirds of new awards were in defence, highlighting growing exposure to global security spending. The company also reported its largest pipeline in over a decade at £12.1bn, with particularly strong growth in North America...

.wealthoracle.co.uk/companies/SRP

What's the next hurdle ?

Nice !

I am sure it will happen.

With the Naval contract win today, SRP's largest business segment is defence.

Given the performance of other defence stocks over the last 4 years, I have been accumulating.

Always bounces back ! Another solid winner for me.