The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSerco Share News (SRP)

Share Price Information for Serco (SRP)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 185.10
Bid: 185.80
Ask: 185.90
Change: 1.50 (0.82%)
Spread: 0.10 (0.054%)
Open: 187.20
High: 187.20
Low: 183.30
Prev. Close: 183.60
SRP Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET PRE-OPEN: UK eyes Drahi BT stake buy; Serco ups outlook

Thu, 26th May 2022 07:58

(Alliance News) - Stock prices in London are seen opening lower on Thursday, after a top official in China warned on the world's second-largest economy, which has taken a hit from Beijing's strict zero-Covid policy.

IG futures indicate the FTSE 100 index will open 20.5 points, 0.3%, lower at 7,502.25. The blue-chip index closed up 38.40 points, or 0.5%, at 7,522.75 on Wednesday.

In early UK corporate news, Johnson Matthey set out a series of strategic objectives after a "very challenging" financial year. AJ Bell reported a "solid" first-half. Auto Trader upped its payout amid a sharp profit rise.

Elsewhere in the FTSE 100, BT said the UK government is probing a recent investment in the telecommunications operator on national security grounds.

In December, billionaire telecom tycoon Patrick Drahi's Altice lifted its stake in BT to 18% from 12% previously. The transaction has been referred to the UK's National Security & Investment Act 2021.

"BT Group will fully cooperate with this review," the company said.

Auto Trader reported an annual earnings rise and anticipates more growth ahead. It also expects its margins to withstand inflationary pressure.

In the year ended March 31, the vehicle marketplace reported a 65% revenue hike to GBP432.7 million from GBP262.8 million. Compared to financial 2020, largely pre-pandemic, revenue increased 17% from GBP368.9 million.

The chunkier year-on-year revenue rise stemmed from an easier comparative. Auto Trader noted it provided free advertising to retailer customers in April 2020, May 2020, December 2020 and February 2021 amid the Covid-19 pandemic. It also had provided a discounted rate in June 2020.

Auto Trader's pretax profit jumped 91% to GBP301.0 million from GBP157.4 million. It was up 20% from financial 2020's GBP251.5 million.

The company's annual payout totalled 8.2 pence per share, up 64% from 5.0p.

Average revenue per retailer surged 67% to GBP2,210 from GBP1,324. ARPR is the average monthly revenue generated from retailer forecourts divided by the average monthly number of retailers.

Looking ahead, it expects "another good year of ARPR growth".

"Despite pressure on costs, we anticipate operating profit margins to be consistent year-on-year at 70%," Auto Trader said.

"Despite growing economic uncertainty, the board is confident of meeting its growth expectations for the year."

London-based specialty chemicals firm Johnson Matthey recorded an annual revenue increase but profit came under pressure.

Results for the financial year that ended March 31 were in line with expectations, however.

Revenue climbed 3.8% to GBP16.03 billion from GBP15.44 billion. Pretax profit fell 13% to GBP195 million GBP224 million.

The company posted "major impairments and restructuring" costs of GBP440 million, up sharply from GBP154 million. It noted GBP325 million of these costs stemmed from the sale of its Battery Materials business.

Johnson Matthey upped its payout by 10% to 77.0 pence from 70.0p.

The one-time FTSE 100 constituent said it was a "very challenging year".

"We took important and necessary strategic decisions with the business portfolio, with the exit from Battery Materials and divestment of Health. I know many of our stakeholders were very disappointed, but these were essential actions to enable us to focus on attractive, high growth opportunities that have a vital role to play in the acceleration towards net zero. I, the rest of the board and the executive team are determined that we will restore value to our shareholders," Chair Patrick Thomas said.

The company set out a series of strategic objectives on Thursday, hailing its platinum group metals services arm as its "backbone". It also targets GBP150 million of cost savings by financial 2025.

A leaner Johnson Matthey will focus on "four businesses enabling the automotive, chemical and energy industries transition to net zero".

On Tuesday, FTSE Russell said Johnson Matthey is indicated to return to the FTSE 100 in the quarterly review next month.

Elsewhere in London, retail investment platform AJ Bell delivered a "solid performance" in its half year ended March, despite tough comparatives.

Revenue climbed 2.2% year-on-year to GBP75.5 million from GBP73.9 million, though pretax profit fell 17% to GBP26.1 million from GBP31.6 million.

"This is a very good result against a significantly more challenging market backdrop to that experienced in the first half of last year, when retail investor engagement and dealing activity was exceptionally high particularly in the direct-to-consumer market," Chief Executive Andy Bell said.

Assets under management increased to GBP74.1 billion from GBP72.8 billion at financial year end.

Inflows amounted to GBP5.5 billion, while outflows came to GBP2.7 billion. It saw a GBP1.5 billion hit from market movements.

AJ Bell lifted its payout by 13% to 2.78p per share from 2.46p.

Looking ahead, the company expects a "significant benefit" from a "higher interest rate environment".

Outsourcer Serco lifted its financial guidance in an impromptu trading update.

In the first four months of 2022, Serco has seen "stronger than expected trading" and favourable foreign exchange movements.

It now expects underlying trading profit at actual currency rates of GBP225 million, up about GBP30 million from prior guidance and with favourable currency movement contributing GBP10 million of that. This result would represent a 1.7% reduction from GBP229 million in 2021.

In Tokyo on Thursday, the Nikkei 225 ended down 0.3%. The Shanghai Composite was up 0.4%, while the Hang Seng in Hong Kong was 1.0% lower. The S&P/ASX 200 lost 0.7%.

China's premier has sounded an unusually stark warning about the world's second-largest economy, saying it must return to normal as the country's zero-Covid strategy bites into growth.

In some ways, the challenges now are "greater than when the pandemic hit hard in 2020", Premier Li Keqiang told a State Council meeting on Wednesday, according to a readout by the official Xinhua news agency.

"We are currently at a critical juncture in determining the economic trend of the whole year," Xinhua quoted Li as saying. "We must seize the time window and strive to bring the economy back onto a normal track."

In New York on Wednesday, the Dow Jones Industrial Average closed up 0.6%, the S&P 500 up 1.0% and the Nasdaq Composite up 1.5%.

Equities in New York climbed after the US Federal Reserve's latest meeting minutes offered little in the way of surprises.

Fed officials highlighted that interest rates need to rise quickly to rein in inflation and that hikes similar to the 50-basis-point one agreed at the May meeting may be necessary in the imminent future, minutes from the meeting showed.

Policy makers reaffirmed their determination to restore price stability and agreed that the Federal Open Market Committee should "expeditiously" move the stance of monetary policy toward a neutral posture. This would be achieved through both increases in the target range for the federal funds rate and reductions in the size of the Federal Reserve's balance sheet.

Further, most participants were of the view that 50-basis-point increases in the target range "would likely be appropriate at the next couple of meetings", the meeting minutes showed.

The pound was quoted at USD1.2553 early Thursday in London, firm on USD1.2547 at the London equities close on Wednesday. The euro stood at USD1.0666, down from USD1.0678. Against the yen, the dollar was trading at JPY127.20, down on JPY127.31.

Brent oil quoted at USD114.09 a barrel, up from USD113.93. Gold stood at USD1,846.13 an ounce, down from USD1,850.30.

The economic events calendar on Thursday has US economic growth figures and the latest jobless claims numbers at 1330 BST.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

More News
28 Feb 2023 17:38

FTSE 100 falls on earnings drag; still logs best Feb in four years

FTSE 100 records best Feb performance since 2019

*

Read more
28 Feb 2023 16:57

LONDON MARKET CLOSE: FTSE 100 red, sterling keeps up positive momentum

(Alliance News) - Stocks in London were largely higher at the close on Tuesday, though the FTSE 100 was pulled into the red by poorly received results from online grocer Ocado and chemicals firm Croda International.

Read more
28 Feb 2023 10:16

Serco yearly profit and revenue climb; announces new buyback

(Alliance News) - Outsourcer Serco Group PLC on Tuesday said annual revenue ticked up as it recovered from Covid, while it announced a new share buyback for 2023.

Read more
28 Feb 2023 09:14

LONDON MARKET OPEN: Ocado shares slump; pound up after UK-EU deal

(Alliance News) - Stock prices in London opened lower as investors digested a mixed set of local corporate earnings, and waited to hear on progress of the UK-EU deal on the Northern Irish border.

Read more
28 Feb 2023 08:00

Serco backs 2023 guidance as trading profit, revenues rise

(Sharecast News) - Outsourcer Serco hiked its dividend on Tuesday as it reported a rise in full-year profit and revenue despite a decline in Covid-related work.

Read more
28 Feb 2023 07:58

LONDON BRIEFING: abrdn swings to loss; Ocado retail sales fall

(Alliance News) - Stocks are likely to open flat on Tuesday in London, as investors wait to hear of progress in the breakthrough EU-UK deal on the Northern Irish border.

Read more
23 Feb 2023 14:54

Serco lands USD690 million US health insurance services contract

(Alliance News) - Serco Group PLC on Thursday said it has been awarded a USD690 million contract by the US health department.

Read more
23 Feb 2023 07:45

Serco wins $690m US govt health contract

(Sharecast News) - Government outsourcer Serco has won a $690m contract by the US Department of Health to continue working on whether people are eligible for federal health insurance.

Read more
21 Feb 2023 12:15

LONDON MARKET MIDDAY: Stocks red, sterling strengthens after PMI print

(Alliance News) - Despite an unexpected return to growth for the UK private sector in February, stock prices in London were lower at midday on Tuesday as investors awaited the minutes of January's US Federal Reserve meeting, due out on Wednesday.

Read more
21 Feb 2023 09:53

UK Financial Reporting Council closes Serco prisoner tagging probe

(Alliance News) - The UK Financial Reporting Council on Tuesday said it is closing its investigation into Serco Group PLC regarding the company's annual results for 2011 and 2012.

Read more
21 Feb 2023 09:09

FRC ends probe into Serco financial statements

(Sharecast News) - The Financial Reporting Council (FRC) announced the closure of its investigation into Serco's financial statements for 2011 and 2012 on Tuesday.

Read more
17 Feb 2023 08:22

Smith+Nephew names ex-Serco Group CEO Rupert Soames as chair designate

Ex-Serco CEO Rupert Soames named chairman designate

*

Read more
17 Feb 2023 07:58

TOP NEWS: Smith & Nephew appoints former Serco CEO Soames as new chair

(Alliance News) - Smith & Nephew PLC on Friday appointed former Serco Group PLC chief executive Rupert Soames as its new chair.

Read more
16 Feb 2023 15:49

UK earnings, trading statements calendar - next 7 days

Friday 17 February 
Allianz Technology Trust PLCFull Year Results
Kingspan Group PLCFull Year Results
NatWest Group PLCFull Year Results
Pod Point Group Holdings PLCFull Year Results
Segro PLCFull Year Results
Monday 20 February 
Bank of Cyprus Holdings PLCFull Year Results
Georgia Capital PLCFull Year Results
Goldplat PLCFull Year Results (TBC)
LungLife AI IncFull Year Results
Tristel PLCHalf Year Results
Wilmington PLCHalf Year Results
Tuesday 21 February 
Antofagasta PLCFull Year Results
BHP Group LtdHalf Year Results
Blancco Technology Group PLCHalf Year Results
Finsbury Food Group PLCHalf Year Results
HSBC Holdings PLCFull Year Results
InterContinental Hotels Group PLCFull Year Results
Safestore Holdings PLCTrading Statement
Smith & Nephew PLCFull Year Results
Springfield Properties PLCHalf Year Results
Sylvania Platinum LtdHalf Year Results
Trifast PLCTrading Statement
Wednesday 22 February 
Avingtrans PLCHalf Year Results
City of London Investment Group PLCHalf Year Results
Conduit Holdings LtdFull Year Results
Liberty Global PLCFull Year Results
Lloyds Banking Group PLCFull Year Results
Primary Health Properties PLCFull Year Results
Renewables Infrastructure Group LtdFull Year Results
Rio Tinto PLCFull Year Results
Synectics PLCFull Year Results
TBC Bank Group PLCFull Year Results
Transense Technologies PLCHalf Year Results
Thursday 23 February 
Anglo American PLCFull Year Results
Arbuthnot Banking Group PLCTrading Statement
BAE Systems PLCFull Year Results
Bluefield Solar Income Fund LtdHalf Year Results
Drax Group PLCFull Year Results
Driver Group PLCFull Year Results
Genus PLCHalf Year Results
Hays PLCHalf Year Results
Hikma Pharmaceuticals PLCFull Year Results
Howden Joinery Group PLCFull Year Results
Macfarlane Group PLCFull Year Results
Made Tech Group PLCHalf Year Results
Mondi PLCFull Year Results
Morgan Sindall Group PLCFull Year Results
Pantheon International PLCHalf Year Results
Rolls-Royce Holdings PLCFull Year Results
Serco Group PLCFull Year Results
Spectris PLCFull Year Results
Versarien PLCFull Year Results
WPP PLCFull Year Results
  
Copyright 2023 Alliance News Ltd. All Rights Reserved. 

Read more
31 Jan 2023 09:26

LONDON BROKER RATINGS: Barclays cuts Relx; Jefferies raises Team17

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning:

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.