IC says 'Buy'28 Feb 2017 15:42
Outsourcer Serco 's (SRP) results showed it isn't out of the woods yet, triggering an 18 per cent decline in the share price on the day. Analysts concluded that the markets had been too optimistic about a recovery in margins, which remained stubbornly immobile.
**But there remains some room for optimism. In August, the company raised guidance on underlying trading profit to reach at least £80m, following an earlier raise in May. In the event, this came in at £82.1m, even with the £19m impact from exiting its private sector outsourcing business.