Serco’s Adjusted Operating Profits Rise 43%

Serco Group plc said adjusted operating profit for the six months ending in June rose 43 percent to almost $179 million, compared to an expected $165 million, according to company data.  Serco expects double-digit revenue growth in coming years as government at home and abroad continues to outsource work to save cash, helping boost its shares more than 5 percent to a seven-month high.

CEO of Serco Group plc. Chris Hyman told Reuters “We have excellent visibility. There is increasing pressure on governments around the world to do more with less due to the fiscal crisis … they are looking for people with a good track record for service, ” adding “We will see double-digit organic revenue growth over the next few years.”

Recent wins include deals to operate Australian immigration centers , a Department of Homeland Security contract for record processing services for legal proceedings pertaining to immigration benefits, and a green transportation project for the City of London.

Hyman said the group is looking at entering new markets, notably business process outsourcing (BPO), the sector that handles IT outsoucring for corporations and government departments.  Hyman added that the group would make acquisitions in this market if opportunities arise.

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