Serco profits looking up despite revenue drop

Outsourcing specialist Serco (LON:SRP) has said that it expects to report first half revenues of £1.35 billion, down from £1.51 billion in the same period of last year due to contracts terminating in 2017 and currency movements. At the same time, profit guidance has been increased to £35-40 million due to transformation savings. Similar trends are expected to play out over the full year with revenues down and profits up relative to 2017.

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Group CEO Rupert Soames said: “Notwithstanding market conditions that are less than ideal, particularly in the UK, we are responding appropriately and continuing to make progress in line with our strategy“. Shares in Serco were down by 4.41% at 96.45p at 11:00 BST.