Serco Share Discussion Threads

[davethehorse] 08/2/2021 09:37

The slide continues, chart awful and looks a strong sell on technicals. Needs some really good news to turn it around.

[salpara111] 06/2/2021 10:18

Results soon, if they can announce the long awaited return of the divi that would undoubtedly improve sentiment.
Got this on my watchlist but wont move until I see the results.

[davethehorse] 04/2/2021 15:17

Some negative comment in the media this week re cyber attacks at Serco

[casholaa] 04/2/2021 14:06

The reason for the 'buyback' has been known for some time.

[casholaa] 04/2/2021 14:03

I think, generally, a 'buyback' would actually have a positive effect on the sp, however, it's a small 'buyback' so I doubt the positive effect would be significant. The lost the nuclear contract with the UK which I think was worth around £20m p/a, but that only has limited significance. I'd look at the fundamentals and factor in the possibility of being undercut for government contracts due to the financial damage suffered by the UK and other countries when looking at this, although, governments don't like change.... so it may be secure in that regard. All the best.

[davethehorse] 02/2/2021 11:00

Back in yesterday at 117p, surely this is great value sub 130p?

[davethehorse] 01/2/2021 13:50

Are the SRP share buy backs holding it back? i.e being held back to achieve a lower buy back price??

[davethehorse] 01/2/2021 13:35

Surely SRP are due a decent bounce soon?

[davethehorse] 29/1/2021 08:53

Every dog has it's day though may be best to keep holding

[carer] 27/1/2021 15:51

Realised that this share is a real dog . regret to have bought into this one. Want to get out off this one asap.

[dealy] 19/1/2021 12:18

Serco and Capita should merge.

[mallorca 9] 18/1/2021 17:35

Well said - me too.

[srichardson8] 15/1/2021 14:01

I think and hope this is an oil tanker rather than a speedboat. Management comment seems realistic and informative and whilst (for instance) the forward price earnings doesn't look particularly cheap the return on capital now looks miles better, the balance sheet really quite good and the prospects for modest growth excellent. The pandemic impact this year and perhaps onward is difficult to ascertain, as acknowledged by the recent trading update, and there are some glaring bald patches - air travel related, leisure centres and so on. There may also be a simple market factor that investors, especially aggressive funds and individuals, have been and still are mnore prepared to buy what are pretty high growth/risk shares especially in tech. I cannot really understand why the Altman score, which measures bankruptcy risk, is so low and there hasn't been much institutional buying though I am reassured to see the small increase in the Blackrock stake. They are, imo, very conservative and very thorough. In short, it seems now to be a much better managed company with a low share price. Rather better, perhaps, than G4 which has effectively been taken out. Serco is only valued at £1.5bn (G$ much larger, £3.8bn, exit mutltiple around x16) which really means it is a small cap despite >1bn shares in issue. I am guardedly optimistic.

[samsnead] 07/1/2021 15:08

Why is Serco so cheap to buy? - Bank of America recommend buy - well positioned to have greater share of domestic market. 2021 Trading profit projected up 6% to £165M. Governments as well as ours, continue to demand its services thru pandemic. Contract with Australian prison since 2006 extended and has effective monopoly with prison contracts - views anyone?

[farrugia] 23/12/2020 14:02

why is this trading so low? the sectors serco operates will be more in demand in the near future?

[essentialinvestor] 21/12/2020 14:05

Had a very small amount.

[davethehorse] 18/12/2020 08:30

Looks like heading back into the sub 120p trading range, even after such a good update. Anyone seen latest broker targets?

[ianb5004] 17/12/2020 18:51

hxxps://news.sky.com/story/covid-19-test-and-trace-firm-serco-to-repay-furlough-cash-and-award-staff-bonus-12165146

[mo2550] 17/12/2020 18:10

https://bylinetimes.com/2020/12/15/serco-g4s-may-be-excluded-from-government-contracts-under-new-proposals/

[sir bean counter] 17/12/2020 12:32

I think it's clever to avoid the cheap negative headlines that a dividend could bring now, especially when a divi could still be quietly re-introduced in a few months time. Instead, they've announced a £40m share buy-back - although they say some shares may be used for employee remuneration, my guess is that's partially so they have a defence if accused of returning perceived ill-gotten Covid gains to shareholders. My hunch is most shares will be cancelled, making it a cheeky share buy-back that would support the share price. So shareholders still benefit, without the cheap negative soundbites that a divi might have caused. Just my interpretation...

[paulof2] 17/12/2020 12:11

Perhaps, but saying you’re not paying dividends due to covid uncertainty when it is covid in part that has contributed to strong results seems a little strange.

That said can’t take away from the results very solid, the dividend would have been the cherry on the top.

[anderson sw] 17/12/2020 09:27

I suppose on reflection it’s understandable why they’ve held off. There’s the uncertainty attached to Brexit and Covid of course but our lazy, thick media would regurgitate all their ill informed bile about the company if there was a return to dividends right now which can’t be helpful when one assumes lots of covid vaccination related contracts are being discussed.

Full year results, with COVID vaccinations more widespread, Brexit deal position known and CFO swap imminent does sound a more sensible point for them to announce a resumption.

[ianb5004] 17/12/2020 09:22

I expected no divi given they haven't paid one for a few years and in the last update they mentioned there was still uncertainty due to covid. Probably wise to wait for February and see progress on vaccine v covid..

Very strong trading update though and share price way off last years highs of £1.70p. Revenues up 20% underlying profits up 35% margin up to 4%
Looks a safe hold, plenty of upSide little if any downside at this price imo.
Broker upgrades to follow?

[paulof2] 17/12/2020 08:55

Good results but very disappointing decision on dividends.

They could have easily paid one, looks like this will be stuck in the same trading range for even longer now.