Serco continues on growth track - but sidelines one investment idea

Serco Group, the 'international task management contractor', reported another set of good figures with interim results for the period ending 30th June.
Turnover was up almost 15% to £391M and profit before tax up 20%.

Chairman Richard White says the group is benefiting from a strong market in the UK demanding the products and skills in which Serco specialises, as well as good international opportunities. Over 40% of profit is now earned in other countries, and Serco intends to continue this trend through organic growth and acquisitions. Complementary companies have already been purchased in the US, Italy and most recently Germany.

Serco is a major outsourcing player, especially in the public sector. It is particularly interested in getting involved in large, complex projects. With its investment partner Nomura, the company is currently looking hard at bidding for a share of the National Air Traffic Service.

The prospect of taking on London Underground, however, apparently holds less appeal. "The investment required would be too high," says chief executive Kevin Beeston.

Elliott Chase