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UK outsourcer Serco says braced for tough 2014 as profits fall
March 4, 2014 / 7:26 AM / 4 years ago

UK outsourcer Serco says braced for tough 2014 as profits fall

LONDON, March 4 (Reuters) - Embattled British outsourcing group Serco said on Tuesday it was braced for a tough 2014 as it recovers from the impact of government contract failures, profit warnings and management exits that pushed 2013 annual profit down 6 percent.

The firm, which on Friday named Aggreko chief executive Rupert Soames as its new boss, said 2013 adjusted pretax profit fell to 254.4 million pounds ($425 million), slightly below analyst forecasts of 257 million pounds.

Serco had already warned that restructuring costs taken to help try and win back Britain’s trust would drive profits lower in 2014.

The company said its order book was worth 17.1 billion pounds, down 2 billion pounds on a year ago, and a bid pipeline worth 12 billion pounds over the next two years.

Adjusted net debt for 2013 grew 21 percent to 701 million pounds due to heavy exceptional charges, although the group said it still had sufficient financing headroom.

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