(Alliance News) - Serco Group PLC on Monday said its performance so far in 2021 has exceeded its expectations amid strong demand for Covid-related services.
The Hook, England-based health, transport, justice, immigration, defence, and citizens services provider said trading has been stronger than it expected in recent months.
Serco said it expects 2021 revenue to be around GBP4.4 billion, and underlying trading profit to be not less than GPB225 million. A year ago, the company posted revenue of GBP3.88 billion and underlying trading profit of GBP163.1 million.
The company explained that, in the UK and Australia, volumes of work related to Covid-19 support to governments have been higher, and have continued for longer, than it anticipated.
In addition, Serco said a number of contracts across the business have performed better than expected, notably immigration-related contracts in the UK and Australia and healthcare insurance eligibility services contracts in the US.
Finally, a number of commercial discussions that Serco had expected to complete in 2022 are now anticipated to be finalised in 2021.
Looking into 2022, Serco said it expects to see much lower demand for Covid-19 related services, partially offset by the impact of new work secured in 2021 and growth in the company's core non-Covid-19 related business.
FTSE 250-listed Serco shares were trading 3.1% higher in London on Monday at 134.80 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Serco (SRP)