Serco Share News (SRP)

IAG saw profits nearly double last year and they are expected to rise sharply again in 2015, but the company may face a raft of headwinds over the coming year. For starters, the acquisition of Aer Lingus has yet to close. Even if it does, regulators might still ask IAG to divest slots at Heathrow.IAG saw profits nearly double last year and they are expected to rise sharply again in 2015, but the company may face a raft of headwinds over the coming year. For starters, the acquisition of Aer Lingus has yet to close. Even if it does, regulators might still ask IAG to divest slots at Heathrow. As well, the possibility exists that US authorities could dilute Ireland's exclusive status for pre-clearance activities. A decision by Washington to move against corporates' preferential tax treatment in Ireland - the motive for much of the company's strong corporate trade - constitutes another possible threat. The company's North-Atlantic routes, its bread and butter, also face stiff competition. Furthermore, the company's Latin American markets are not looking very healthy. No need to get on, says The Times's Tempus.The quality of a management team is always a key factor and particularly so in the case of outsourcing giant Serco. Hence the importance of how the appointment of the new chairman, Sir Roy Gardner, will impact on the current chief Rupert, Soames. Serco does not need a new chief. Soames carved himself a larger-than-life reputation transforming Aggreko, from where he pinched his finance director, Angus Cockburn.The share price reaction yesterday said as much, the stock ended the day slightly lower, hardly a ringing endorsement. "If Mr Soames is allowed the time and space he has demanded, businesses will be sold, contracts will be won and Serco will recover. Impatient investors and the arrival of Sir Roy raise the interesting "if"," Tempus says.