Serco forecasts a 35% annualised growth in its full-year underlying trading profit

In an announcement on Thursday, Serco Group plc (LON: SRP) said that its underlying trading profit in fiscal 2020 was likely to come in roughly 35% up on a year over year basis. The company also named Nigel Crossley as its next CFO on Thursday.

Crossley will take the helm next year in April as the current CFO Angus Cockburn steps down. At the moment, Crossley is serving as the Director of Finance at Serco Group. In separate news from the United Kingdom, Integrafin Holdings said its financial performance in fiscal 2020 was sufficiently strong considering the circumstances.

Serco expects £3.9 billion of revenue this year

Serco Group said that its underlying trading profit in fiscal 2020 was likely to print in the range of £160 million to £165 million. In comparison, it had reported £120.2 million of underlying trading profit in fiscal 2019.

The support-services company also forecast a 19% annualised growth in revenue this year to £3.9 billion. Serco also offered guidance for the next year on Thursday. The Hook-based company expects £4.1 billion of revenue in fiscal 2021 and roughly £165 million of underlying trading profit.

Serco Group closed the regular session about 0.2% down on Thursday. On a year-to-date basis, its shares are now a little under 25% down in the stock market. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.  

Serco refrains from declaring a dividend on Thursday

Serco refrained from declaring a dividend on Thursday due to the uncertainty attributed to the second wave of the COVID-19 crisis that has so far infected more than 19 million people in the United Kingdom and caused over 66 thousand deaths. A decision regarding dividend payments, the British company said, will be announced later when it publishes its full-year financial report.

Serco, however, highlighted on Thursday that it plans on launching a share repurchase programme worth £40 million in the near future. In a report published in October, the British company had expressed confidence that its performance showed resilience in the fiscal third quarter.

Serco Group performed largely upbeat in the stock market last year with an annual gain of roughly 70%. At the time of writing, it is valued at £1.54 billion and has a price to earnings ratio of 12.80.