Serco Share Discussion Threads

[davethehorse] 25/11/2020 09:13

To me it looks like a share overhang exists with some institutions, once they clear and we go through 120p we should see 150p+ again pretty quickly.

[davethehorse] 25/11/2020 09:03

Looks like a decent opportunity to get in if not already at this price, surely oversold in current market and more scope than many now to rise off the back of the recent drop.

[bc4] 24/11/2020 13:43

Can we stay above 120p if so could be on are way back to 150p

[rimau1] 19/11/2020 10:48

May also get a boost from government defence spending (UK and Australia in particular)

[ianb5004] 19/11/2020 10:39

Serco Group PLC (LON:SRP), the outsourcing group that is running large parts of the UK government’s coronavirus (COVID-19) test-and-trace and virus testing services, has upgraded its full-year profit guidance after enjoying strong revenue growth and clamping down on costs in the past three months and said it may restart dividend payments.

In the UK, the FTSE 250-listed group has been awarded extensions to its contracts to provide test sites and call handlers for test and trace, which it claimed was “an indication of our customer's satisfaction with the quality of work we have delivered”.

With cash generation in the third quarter of 2020 better than expected and after recently raising £154mln from US investors, the outsourcing group said it intends to soon repay the government VAT deferrals and make a decision about its previously withdrawn dividends.

For the full year, Serco said it now expects to generate revenue of around £3.9bn and an underlying trading profit of £160mln-£165mln, representing organic growth of around 15% and over 30% respectively.

The wide range for the profit guidance is because some contracts customers are adjusting their requirements week-by-week because of the shifting sands of coronavirus restrictions.

Serco, which also runs immigration detention centres in the UK and Australia and has a Medicare & Medicaid services contract in the US, said all of its regions worldwide are performing better than it had expected.

In the UK there have been increases in the number of asylum seekers looked after on behalf of the Home Office, while its new UK prisoner escorting contract has also started, and in Australia restrictions on movement as a result of COVID-19 has meant additional work.

[bc4] 13/11/2020 08:00

Liberum: Serco shares oversold
Outsourcing group Serco (SRP) is ‘trading strongly’ and the shares are oversold, according to Liberum.

Analyst Joe Brent retained his ‘buy’ recommendation and target price of 180p on the shares, which rose 4.6% to 119.1p yesterday.

He said the group was ‘trading strongly’, helped by the contract for the test and trace system and despite problems at Merseyrail.

‘[Serco chief executive] Rupert Soames is adamant that test and trace is performing well and we think it is unlikely to disappear any time soon,’ said Brent.

‘Management is upbeat about the US in the most likely scenario of a Joe Biden win and a Republican Senate.’

Brent said given the opportunities ‘the shares have been oversold’.

[racktp6] 12/11/2020 10:32

Is it just being used as a conduit to siphon money out of the government for bozo?

[mallorca 9] 12/11/2020 10:29

Straight through to £1.60

[bc4] 12/11/2020 09:49

Waking up now could be on the move

[prokartace] 11/11/2020 10:34

well 1 out of 2 mallorca

[mallorca 9] 10/11/2020 16:23

prokartace,

that's a very fair point ...

I'm also shorting the DOW via a spreadbet.
The USA daily new cases for Covid is now 130k and rising. That's going to hit their hospitals in a week or two so we could see the USA index tumble - possibly even this week.

I have no concern re Serco though - it will bounce back VERY strongly - we just have to buy now and give it a few months.
£2.50 by end next year !

[prokartace] 10/11/2020 13:47

Talked yourselg into that maiiorca. I will wait a while. Not sure about the whole market at this index level

[mallorca 9] 10/11/2020 13:23

Money where mouth is ..... added again at £1.06

[mallorca 9] 10/11/2020 13:19

Now only valued at 8 x forward earnings and with a dividend about to be re instated.
Barely any net debt now either (£150m), with net profit of circa £165m pa !

I guess this is now a 'buy when others are fearful' stock.

This is a global business , not just UK.
Frustrating at the moment but that gives opportunity on a stock where the fundamentals are compelling.

[w1lbur01] 10/11/2020 10:10

Also people chasing other fish.

[mallorca 9] 10/11/2020 09:54

Sentiment so low on this due to Serco's name being unfairly dragged through the mud re test and trace.

We have to look beyond Covid though and there is now light at the end of the tunnel.

I have added this morning.

[smithless] 10/11/2020 09:36

Lot of Institutional shares changing hands at the moment, which is a drag on the share price. Will pass, but depressing price at present.

[davethehorse] 09/11/2020 17:02

SRP under pressure even in this market!

[jimarilo] 05/11/2020 11:39

It is easier to fool people, than it is to convince them that they have been fooled

It will be established on msm soon that there was no virus, just regular flu and pneumonia

People that say they had covid are believing what they were told

Covid has been a vehicle to agenda 21 and the great reset, the biggest con in humanity

[smithless] 05/11/2020 08:50

Bought a few this morning - see how it goes. Although never good losing a contract, this one was a non-controlling interest one, which is not part of its consolidated P&L, but does impact on cash flow. All the indicators point to a buy.