Serco's annual profit rise
Outsourcer Serco saw pre-tax profits rise despite a four per cent fall in revenue for 2018.
The profit figure was up from £10.6 million in 2017 to £74.1m on sales that fell from £2.95 billion to £2.83bn.
Rupert Soames, Serco Group chief executive, said: "2018 marked an inflection point for Serco. After several years of declining revenues and profits, underlying trading profit at constant currency rose 40 per cent, Reported operating profit grew fourfold and revenue started to grow again in the second half."
Serco, which runs leisure centres in Shropshire and operates waste services in Sandwell, said that the acquisition of the Carillion health contracts contributed to its order book growing to £12bn at the end of 2018, an increase of around 20 per cent since 2016.
For the second year in a row 80 per cent of order intake came from outside the UK.
"Our confidence has been further bolstered by the signing in the first six weeks of 2019 of two very large contracts: AASC - asylum accommodation and support services in the UK valued at £1.9bn, and NGHS - defence healthcare provision in Australia valued at £0.6bn," added Mr Soames.
He said Serco expected to deliver further progress in 2019, with revenue and underlying trading profit both expected to grow.
