Serco tipped for bright 2010
Comments |
by
business editor Trevor Sturgess
Serco, which is due to take over Business Link Kent this Spring,
has been tipped as a winner for 2010.
Share experts at Galvan Research say the business will prosper
this year on the back of public sector cutbacks.
Serco Group already operates Business Links in London and the
South West. which provide advice and support to firms and
entrepreneurs, and will run Business Link Kent, based in Kings
Hill, West Malling, from April. It also operates Docklands Light
Railway.
In last month’s pre-close trading update, the group said it was
on track to deliver on its revenue projections and saw further
potential opportunities in both existing and new markets.
It said: "The significant challenges facing our customers are
driving their need to improve the efficiency and productivity of
essential services, which together with our strong capabilities,
gives us confidence in our prospects for the future."
Shares in Serco have been on a rising trend since September,
closing last week (31) on 530p. Andrew Gibson, head of Galvan
Research, said it took the view that Serco’s pre-close trading
statement markedly understated the actual prospects for the
outsourcing group, considering that double-digit revenue growth is
on the cards.
He said: "Prospective public sector budget cuts of up to 20 per
cent over the next three years should ensure that the services of
the DLR operator in London should be in progressively more
demand."
Serco runs scientific establishments, traffic management
systems, railways, border protection and administration centres. It
also detains offenders, helps hospital patients and supports the
armed forces.
Serco releases its 2009 full year results on February 26.
Monday, January 04 2010
The KM Group does not moderate comments.
Please click here for our house rules.