Serco sees lower revenue, profits up in 2024

29th Feb 2024 08:06

(Sharecast News) - Government contractor Serco said it expected slightly lower revenues this year and a 5% rise in profit as 2023 earnings rose 25%.

The company which runs immigrant detention centres in the UK, said operating profit for the year to December 31 came in at £272m.

It now expects revenue this year to be £4.8bn, compared with the £4.9bn reported in 2023.

"Revenue is expected to be lower organically due to our CMS contract now being in its new five-year agreement, the annualisation of our previously announced exit from certain low-margin contracts, and contract mix change in immigration, as we support the UK government's efforts to reduce the number of asylum seekers being accommodated in hotels," Serco said on Thursday.

Underlying operating profit is expected to grow by around 5% to £260m, driven by new contracts ramping up, operational efficiency improvements across the existing portfolio and a contribution from acquisitions, Serco added.

Reporting by Frank Prenesti for Sharecast.com