Service company Serco Group plc (SRP.L) Wednesday, in an interim statement covering the period form January 1 to date said, it is on track to meet full-year expectations as stated on March 5, with strong first half organic revenue growth and investment in future market development.
For the full-year, the firm said it sees a modest improvement in the 3.3 percent rate of organic revenue growth that was achieved in 2012, and the adjusted operating margin to be broadly maintained around the 6.4 percent level reported last year.
The company further said first half is expected to deliver strong organic revenue growth driven by last year's record level of contract awards, many of which only started part way through last year. Supporting the strong pipeline and market opportunities in the Global Services division, there is also a greater level of investment in contract bidding and new market development activity occurring in the first half, it added. Including the effect of this, the adjusted operating margin for the company as a whole is anticipated to be broadly flat on the comparable period.
Commenting on the results, Christopher Hyman, Chief Executive of Serco said, "Our global BPO business and AMEAA division are delivering further excellent organic revenue growth. We are developing new opportunities in the Americas division, though challenging conditions remain in the US federal contracting market. Meanwhile in the UK, markets continue to show more encouraging signs. We are therefore confident of Serco's portfolio achieving another year of good progress."
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