The market will not be looking for a turnaround in Serco's (SRP) first-half results. New chief executive Rupert Soames has made it abundantly clear that profits will be well down on the comparable period, as Serco grapples with the fallout from its troubled government contracts.
The group's guidance is for adjusted operating profit at constant currencies of 'not less than' £170m this year, with around one-third of that falling in the first half. That works out at around £56m operating profit for the first half - a precipitous fall from £146m last year.
Looking ahead, the focus will be on how the strategic review headed by Mr Soames is progressing, and whether the group is likely to find any more onerous contract issues that could lower future expectations.
