Investment: Serco surge in world of plenty
Thursday 03 September 1998
There are few signs of the boom ending. True, contracts are becoming more complex. Intricate joint ventures to build and operate NHS hospitals are a far cry from simple outsourcing deals. But Richard White, Serco's chief executive, says the government's new drive for public-private partnerships is providing it with plenty of new projects. They include London Underground and the Defence Evaluation Research Agency, both likely to be sold off in the next few years.
Expansion in Australia and the US, where Serco recently made an acquisition, is fuelling further growth. Its balance sheet, with net cash of pounds 11.5m at the half-year, is a constraint on growth. But Serco will raise cash by selling its share holdings in mature private finance projects. It recently raised pounds 4.5m by selling its stake in the RAF's Helicopter Flying School.
Serco shares closed up 35p at 1227.5p but are down 15 per cent from their peak. Still, they still trade on a multiple of 44 times expected full- year profits. That may look expensive in volatile markets. But Serco's solid earnings base and attractive growth prospects means the shares are worth holding.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
- 4 How the language you speak changes your view of the world
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...