Serco 1H Trading In Line With Co. Views, Still Some Difficulties
2014-07-03 06:16:14.512 GMT
By Blanche Gatt
July 3 (Bloomberg) -- Serco says 1H trading, financial
position in line with views presented to market 2 months ago,
some difficulties remain on some contracts.
* Sees 1H adj. rev. ~GBP2.4bn, broadly flat on organic basis
* As announced in April, margins in 1H to be significantly
lower y/y
* 1H contracts awarded >GBP2bn
* Carrying out detailed analysis of contracts; process to be
completed ahead of full-year results
* Likely some provision will be required at half-year; level
yet to be determined
* Contract provision related to loss-making COMPASS program,
underperforming U.K. clinical healthcare contracts to be
charged in 1H; together could require further provisions of
GBP10m-GBP15m at 1H
* Sees one-off costs of ~GBP15m for year from corporate
renewal program
* Sees GBP3m exceptional credit in 1H
Link to Statement:{NSN N84GOQ3HBS3L <GO>}
Link to Company News:SRP LN <Equity> CN <GO>
For Related News and Information:
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To contact the editor responsible for this story:
Blanche Gatt at +44-20-7392-0351 or
bgatt@bloomberg.net
2014-07-03 06:16:14.512 GMT
By Blanche Gatt
July 3 (Bloomberg) -- Serco says 1H trading, financial
position in line with views presented to market 2 months ago,
some difficulties remain on some contracts.
* Sees 1H adj. rev. ~GBP2.4bn, broadly flat on organic basis
* As announced in April, margins in 1H to be significantly
lower y/y
* 1H contracts awarded >GBP2bn
* Carrying out detailed analysis of contracts; process to be
completed ahead of full-year results
* Likely some provision will be required at half-year; level
yet to be determined
* Contract provision related to loss-making COMPASS program,
underperforming U.K. clinical healthcare contracts to be
charged in 1H; together could require further provisions of
GBP10m-GBP15m at 1H
* Sees one-off costs of ~GBP15m for year from corporate
renewal program
* Sees GBP3m exceptional credit in 1H
Link to Statement:{NSN N84GOQ3HBS3L <GO>}
Link to Company News:SRP LN <Equity> CN <GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the editor responsible for this story:
Blanche Gatt at +44-20-7392-0351 or
bgatt@bloomberg.net