Business

Serco profits buoyed by government Covid contracts

Serco recorded a 25% jump in pre-tax profit for the entire year, driven by its support for governments in their response to Covid-19 and a recovery in its leisure and transportation business.

The London-listed outsourcing provider, which runs Covid testing sites in the UK and Ireland, on Thursday reported a pre-tax profit of £ 192.2 million in 2021, compared to £ 153.3 million the previous year. Revenue rose 14% year-on-year to £ 4.4 billion.

The group increased its final dividend by 15% year-on-year to 1.61p, saying it was launching a £ 90m share repurchase.

“Sarco has delivered exceptional financial and operational performance around the world in the face of constant challenge and disruption,” said Rupert Somes, the company’s CEO.

“Being a contract manager or team leader, responsible for the day-to-day supply of essential public services, has never been an easy job, but 2021 was the toughest operating environment I have seen,” he added.

Sarko said her support for governments following Cubid’s expansion provided “a short-term increase in revenue and profits” and created “a lasting legacy of a much more capable and efficient organization, stronger customer relationships and lower debt.”

The group, which runs prisons, trains and security services for governments around the world, also highlighted its activities in Canada, where it helped clear a backlog of driving tests that stood at 500,000 in November.

Shares of Serco fell 3% to 125.6p at noon on Thursday.

Serco profits buoyed by government Covid contracts Source link Serco profits buoyed by government Covid contracts

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