Serco up 6% after a good IMS...
- Serco runs railways in London and northern England and provides a range of support services in sectors including defense, nuclear and education.
- On track to meet expectations for 2009 after a strong start to the year, bolstered by new contract wins from governments and public bodies. Serco has fared relatively well during the economic downturn as it has benefitted from public sector work and outsourcing.
- So far this year, it has signed contracts with a total value of £1bn, and has been appointed preferred bidder for contracts valued at around £250m. New deals include a new partnership with a NHS trust and a contract to run education inspection services in mid-England. It is preferred bidder on a deal to provide immigration detention centers across Australia.
Chief Executive Christopher Hyman said:
"Our customers around the world are facing increasing challenges in delivering better services for their citizens in the current economic environment. We are well placed to help them, given our broad capabilities and the flexibility we have in deploying them to address our customers' needs."
Comment from Cazenove (according to Reuters):
"This looks like a reassuring statement and may help lift the shares which have drifted down this year... However, the main issue which has hit the shares of late, aside from being a defensive stock, is the lower than average free cash conversion announced at the full year results and it may take until the interims results for this to be resolved when investors can see the latest cashflow numbers".
http://www.stockopedia.com/news/announcement/SRP/090512srp000522.htm
http://uk.reuters.com/article/hotStocksNews/idUKLC77026120090512
