Serco soars on updated guidance
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Services specialist Serco (LON:SRP) saw its shares surge 13.70% to 100.40p (as of 14:20 BST) after the company announced that revenues for the 2018 financial year would be at the very top end of prior forecasts. New guidance for underlying trading profits gives a range of £90-95 million, a major upgrade from the previous suggestion of ca. £80 million.
Management said that the improved performance was fuelled by strong operations and new efficiencies as well as end-of-contract settlements that will now fall within the period. Some of these one-off items were previously expected to fall within the 2019 financial year and the company says they will be mindful of that as they draw up detailed plans for next year.
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