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SRP Serco Group Plc

189.70
0.50 (0.26%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Serco Group Plc LSE:SRP London Ordinary Share GB0007973794 ORD 2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.50 0.26% 189.70 190.30 190.50 190.90 188.50 188.90 3,091,819 16:35:06
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
General Government, Nec 4.87B 202.4M 0.1834 10.39 2.1B
Serco Group Plc is listed in the General Government sector of the London Stock Exchange with ticker SRP. The last closing price for Serco was 189.20p. Over the last year, Serco shares have traded in a share price range of 135.30p to 193.00p.

Serco currently has 1,103,545,966 shares in issue. The market capitalisation of Serco is £2.10 billion. Serco has a price to earnings ratio (PE ratio) of 10.39.

Serco Share Discussion Threads

Showing 1576 to 1599 of 2325 messages
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DateSubjectAuthorDiscuss
21/9/2015
08:09
Added a few more at 107.

Looking at the chart for last 12 months it is probably bumping along bottom range until we get news of new contracts.

jdb2005
18/9/2015
14:27
After Labour appoint Left-wing Leader Conservatives believe they can go ahead and privatise more Services which will give Serco more contracts in public sector in UK.
jdb2005
18/9/2015
14:05
Bought some at 108p this afternoon as Dow futures fell below 16390.

Think now I should have doubled up but hindsight wonderful thing !!

jdb2005
17/9/2015
22:18
JaP,

Would you rather buy a good company when the share price is high or when it is low?

dealy
17/9/2015
22:06
Brokers turning less negative to midly positive.
BPO biz has much higher margin that rest of biz, hence higher EV/Sales transaction.
Why don;t you give it a go?

ISS on the look out for a security biz in the US, surprise surprise, ABM on the look out for an acquiror of their security biz.

alphahunter
17/9/2015
16:00
I've thought about investing in this Co. for some time (they actually let some property on my behalf and seemed very professional/efficient).
I also saw them recommended on one of the share sheets some time ago.
BUT I've watched as the share price has gone down and down.
Not really out to make a quick buck (though I wouldn't mind!), rather a decent growth investment over a year or two.
So...when is the time to buy this??
Anyone got any targets they'd be willing to share and why?
Cheers

jap_i
16/9/2015
09:11
Market reaction (or lack thereof) just shows how sick the market is right now.
dealy
16/9/2015
06:45
So they just sold the India business for 1 times EV/Sales. If the rest of the company were valued that way the market cap would be about 3 billion or more than double the current share price
dealy
11/9/2015
08:41
Dealy,

Based on consensus numbers, they deliver a 4.4% operating margin in 2017, that is £140m, which put them on 10x EV/EBIT for 2017, which is what mid-single digit margin peers are trading at...today!
In other words, a 200bp margin improvement over the next 2 years is already backed in today's price two years in advance.

Discount that value at 10% p.a. for execution risk in + AWE + National Living Thing, so you get your 20% over-valuation.

This is raw and crude and unsophisticated, but the market is full of real opportunities that SRP's valuation means source of cash for reinvestment elsewhere for their institutional shareholders who were stuck in the deep fund raising, hence a short position for me.

alphahunter
11/9/2015
08:04
Enterprise value is now just 1.4 billion GBP. So EV/Sales is 0.4. If they have 6% Ebit margins in the long run then EV/Ebit is about 6.

The balance sheet is much stronger now and there is no reason to believe they cannot deliver normal industry margins.

dealy
11/9/2015
06:55
Hi mbmiah,

I don;t think I've stated a price target. I never do publicly because
a) I otherwise get a small psych luggage to carry next time I post
b) The market is a moving ground

I feel that the stock's valuation is way out of synch vs other outsourcers, the usual suspects, the not so usual as Compass,.. the further offshore as ABM, ISS...so for me this is not a trading call.

Spent a bit of time on AWE.

alphahunter
10/9/2015
16:48
Not bought in yet. Just thought you may have bought Alpha, as it did pass your 110 prediction. I would wait for downtrend to finish.
mbmiah
10/9/2015
12:06
Still think they will go to 100p or lower - watch and wait...
davethehorse
08/9/2015
20:02
Nope.
Too expensive.
Short here

Talks about improved offer for the Indian biz - Jefferies upgrades, Berenberger - I think - downgrades, with two scenarii, one of which is 60p.
All relative games and values, I prefer to be long in cos that will benefit from national living wages, not the ones on the receiving end.

Mbmiah, did you buy?

alphahunter
08/9/2015
19:38
Did you buy any Alphahunter?
mbmiah
03/9/2015
01:56
Dealy,

Sure they do pass on re minimum wage.
What about the non statutory changes - in other words the knock-on effect higher up in the wage pyramid?
That's going to be a hard bargain I think, to have these rises passed on and not absorbed I think.

Anyway, the valuation still looks out of sync with the other body shops.

110p.

alphahunter
02/9/2015
16:19
Dealy.....copied and pasted from Interserve's half year results 12/8

We expect the premium to the National Minimum Wage announced in the recent Budget to have an initial adverse impact on margins in the UK Support Services segment of GBP10-15 million in 2016, receding over the next few years thereafter as the change is priced in to relevant contracts.

I certainly wouldn't classify that as a non issue.

I suggest you DYOR!

salpara111
02/9/2015
06:25
Contracts like this allow for price uplifts to be applied to cover statutory changes in minimum wage / social costs etc. Businesses are not expected to subsidise their customers. The minimum wage hikes won't take effect until 2018.

I believe this is a non issue.

dealy
01/9/2015
10:30
Serco has secured a five-year extension to its deal with Norfolk and Norwich University Hospital (NNUH) to provide a range of FM services.

The extension, which runs from August 2015 to August 2021, has a total value of £85 million over the five years.
- See more at:

bugle4
24/8/2015
14:58
Thanks Salpara.

I think this theme is massively under acknowledged / under estimated by the market. I have started setting up a list of companies for shorting whose business models rely heavily on being able to leverage low-pay into their bids for contracts.

On Serco, there are pass-on clauses but the company has recently alluded to wage inflation. So has John Menzies.

I'm short on Serco - on valuation ground but I need to extend to three or four names as this one may be a crowded (short) trade.

alphahunter
23/8/2015
10:55
I guess it comes down to your investment time horizon.
Guys like Templeton are looking at a 5 year time line and if they make a 20% return over 5 years then that will be a good result for them.
The business is still cash flow negative which means that it is at least 2 years away from showing any sort of clean profit so for me I am not going to hurry.
I owned Interserve which just got hammered when they acknowledged that the large rise in minimum wage was going to seriously impact their bottom line until they can renegotiate current contracts.
I have yet to see any acknowledgement from Serco or Capita for that matter who are similarly exposed.

salpara111
20/8/2015
16:15
Slowly sliding to new lows now - no idea when it will find support...
davethehorse
13/8/2015
20:12
I shorted this one last year and put it to rest after the RI. I have just read the past ~100 comments from where I left it last, and not a single one on the recent wage growth in the UK, but plenty of comments the ups and downs in the share price...

Pick-up in hourly earnings, gradual increase of the minimal wage,... and the company's ability to pass these on and beyond, is what will matter in the 12-18 months ahead IMHO.

Yet Serco trades already at a whoping 35x 2016 EPS. Double their margin and you get a valuation about in line with other low added-value outsourcer here and beyond. In other words, the price already assumes a sharp and quick pick-up in margins at a time when inflation in the unit cost of labour at the bottom of the pay range starts creeping in...

What is the bull case? Anyone with radically opposite opinion?

alphahunter
12/8/2015
21:45
Wait for the chart to confirm the bottom. Far better to lose a few % than to take the risk, from my recent experience here.
bamboo2
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