20 December 2012
Ahead of Serco Group plc entering its close period for the financial year
ending 31 December 2012, and following the recent Interim Management Statement
released on 16 November 2012, we will be holding our customary pre-close
meetings with analysts over the coming days. No new material information will
be disclosed. The Group remains on track to meet expectations for 2012: we
expect to deliver another year of strong total revenue growth, including
further good organic growth, together with an increase in Adjusted operating
margin similar to that achieved in 2011. Serco will release its 2012 full year
results on Wednesday 6 March 2013.
Further to the announcement on 7 November 2012, Serco confirms that the
necessary consents and statutory approvals regarding the purchase of DMS
Maritime have been received, with the transaction recently completing at an
acquisition cost of £82m (comprising cash consideration paid of £69m and
incremental net debt acquired of £13m) as previously described.
Serco has also recently reached agreement on two small disposals of operations,
in line with our stated strategy to proactively manage the portfolio by
assessing strategic fit together with expected future levels of performance and
returns. Our education software and UK data hosting operations had become
non-core to the ongoing development of the Group and have both experienced
significant changes in market conditions. Aggregate cash consideration received
on these transactions is £6m, resulting in a provisional non-cash exceptional
accounting loss on disposal of approximately £25m. For the year to 31 December
2011, the financial result of these operations was approximately £14m of
revenue and £2m of Adjusted operating profit.
In a separate announcement today, Serco has set out its plans to establish the
Serco Foundation as an independent charitable foundation to mark Serco's 25th
year as a publicly traded company dedicated to service excellence. Serco is
making a one-off endowment of £5m to the foundation and will provide ongoing
support for its mission to help charities through the application of Serco's
people, skills and capabilities.
Taking into account the above, together with the net profit on disposals
reported in the first half, exceptional items are expected to have a broadly
neutral impact on the income statement for the 2012 financial year.
Chris Hyman, Chief Executive of Serco Group plc, said: "I am pleased with the
operational and financial performance delivered by the Group in 2012,
particularly in the light of challenging conditions in some of our markets.
Establishing the Serco Foundation will allow us to help charities and other
organisations make an even bigger long-lasting difference in addressing some of
the world's most critical issues. We have also progressed the proactive
management of our portfolio, as well as strengthening Serco's overall
positioning with our new BPO division, Serco Global Services, which in turn
supports our confidence as we look to 2013 and beyond."
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226
Serco is a FTSE 100 international service company, which combines commercial
know-how with a deep public service ethos.
Around the world, we improve essential services by managing people, processes,
technology and assets more effectively. We advise policy makers, design
innovative solutions, integrate systems and - most of all - deliver to the
Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, environmental services, facilities management, health, home
affairs, information and communications technology, knowledge services, local
government, science and nuclear, transport, welfare to work and the commercial
More information can be found at www.serco.com
-0- Dec/20/2012 07:00 GMT
Press spacebar to pause and continue. Press esc to stop.