Growing momentum in the outsourcing sector is clear as Serco announced it has won £3.9bn of contracts in the year to date, a 144 per cent increase on the same period last year. The shares drifted down on wider market weakness as the company announced trading was in line with both market and management expectations.
IC TIP:
Buy
at
523p
Christopher Hyman, chief executive, said they expect to see a stronger performance in the second half of the year, but warned that the US government deadlock is making for a very tough environment in North America. Analysts are forecasting around 8 per cent revenue growth to £5bn, with 3.5 per cent of that being organic growth and the balance from acquisitions made in 2011, giving adjusted EPS of 40.6p.
