- New contracts ramping up
- Revenue still expected to dip
Shares in Serco (SRP) are climbing again, following an upgrade to the outlook for 2024. The FTSE 100 outsourcer now expects to deliver an annual adjusted operating profit of £270mn, £10mn more than management had previously forecast. If achieved, this would represent a profit increase of 9 per cent versus 2023.
Serco expects to secure this growth by widening its margins, as opposed to boosting sales. Indeed, revenue is expected to dip by 2 per cent in the period.