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Serco Group FY17 Pre-tax Profit Declines; Affirms FY18 Outlook - Quick Facts

UK-based outsourcing and support services provider Serco Group Plc. (SRP.L) reported fiscal 2017 profit before tax of 19.1 million pounds, down from 29.6 million pounds last year. Loss per share was 0.02 pence, narrower than loss of 0.11 pence in the prior year.

Trading profit for the year was 54.0 million pounds, down from 100.3 million pounds last year.

Reported revenue from continuing activities only declined to 2.95 billion pounds from 3.01 billion pounds last year. Revenue from continuing and discontinued operations also decreased to 2.95 billion pounds from 3.05 billion pounds a year ago.

Serco Group said its board is not recommending the payment of a dividend in respect of the 2017 financial year.

Looking ahead, the company said its guidance for 2018 and outlook beyond is unchanged from that initially provided on 13 December 2017.

For 2018, Serco Group forecast underlying trading profit will grow to around 80 million pounds, on revenues of 2.8 billion to 2.9 billion pounds, i.e. broadly flat organic revenue growth on a constant currency basis. The company therefore expects some improvement in margins, driven largely by transformation savings.

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