Serco, the public services outsourcing giant, has expressed optimism for 2025 after experiencing a surge in orders during the latter part of 2024.
The firm boasts a robust new business pipeline, reportedly the best in “more than a decade”, which is expected to buffer the loss of immigration contracts in both the UK and Australia.
Group Chief Executive Mark Irwin commented on the company’s positive stance going into 2025, highlighting potential growth in North America as a possible counterweight against increased costs within the UK, due to higher national insurance contributions and an uplift in the minimum wage. Although the company projects a steady revenue stream for next year, mirroring figures from 2024, it anticipates a 7% downturn linked to its UK and Australian immigration contracts.
Serco said that revenues for 2024 should hover at about £4.8bn, noting a slight 3% drop in organic revenue across the year. Notwithstanding, underlying profits are poised to jump by 9% year-on-year to roughly £270m after a potent second half.
However, projections signal a marginal decline to £260m for the following year. Mr. Irwin reflected on the year, stating: “We are proud of the progress throughout 2024, reporting a strong financial performance and delivering important services to our customers in a dynamic global environment.”
“We built stronger trading momentum in the second half of the year, particularly in our North America business, and delivered good margin gains through our relentless focus on performance improvement and disciplined execution.”
“Overall, we are confident in the group’s outlook, built on the innovation, expertise and efficiency we bring to our partnership with governments.” The company’s shares saw a 7.3% rise in Thursday morning’s trading.
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