Serco Group plc Company Profile and SWOT Analysis Serco by ICDResearch

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									Serco Group plc

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Serco Group plc                                                                 Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                  Serco House, Hook, RG27 9UY,United            The company reported revenue of US$6,656.46
Headquarters Address
                                  Kingdom                                       million during the fiscal year 2010 (2010). The
                                                                                company's revenue grew at a CAGR of 8.98% during
Telephone                         + 441256745900
                                                                                2006–2010, with an annual growth of 7.31% over
                                                                                2009. In 2010, the company recorded an operating
Fax                               + 441256744111                                margin of 5.58%, as against 5.34% in 2009.

Website                           www.serco.com
                                                                                Revenue and Margins
Ticker Symbol, Stock Exchange     SRP, London Stock Exchange (LON)

Number of Employees               58,799

Fiscal Year End                   December

Revenue (in US$ million)          6,656.46

Revenue (in GBP million)          4,326.70




SWOT Analysis                                                                   Return on Equity

Strengths                         Weaknesses                                    The company recorded a return on equity (ROE) of
                                                                                18.63% for 2010, as compared to its peers, The
Broad business portfolio          Overdependence on the UK market               Capita Group Plc (Ticker: CPI), Interserve plc (Ticker:
                                                                                IRV) and Hunting PLC (Ticker: HTG), which recorded
                                                                                ROEs of 47.43%, 19.58% and 3.76% respectively.
Diversified customer base         Substantial increase in current liabilities   The company reported a net profit margin of 5.58% in
                                                                                2010.
Strong financial performance
                                                                                Return on Equity


Opportunities                     Threats

New contracts                     Currency fluctuations

Recovering economy                Rising Manpower Costs

Strategic acquisition

Strong outlook for BPO services



                                                                                Liquidity Position

                                                                                The company reported a current ratio of 1.15 in 2010,
                                                                                as compared to its peers, The Capita Group Plc,
                                                                                Interserve plc and Hunting PLC, which recorded
                                                                                current ratios of 0.72, 0.86 and 2.30 respectively. As
                                                                                of December 2010, the company recorded cash and
                                                                                short-term investments of worth US$429.69 million,
                                                                                against US$256.31 million current debt. The company
                                                                                reported a debt to equity ratio of 0.64 in 2010 as
                                                                                compared to its peers, The Capita Group Plc,
                                                                                Interserve plc and Hunting PLC, which recorded debt
                                                                                to equity ratios of 2.28, 0.48 and 0.10 respectively.




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Serco Group plc - SWOT Profile                                                                                          Page 1
Serco Group plc

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Operational Efficiency ......................................................................................................................................14
      2.2.5       Solvency ..........................................................................................................................................................15
      2.2.6       Valuation ..........................................................................................................................................................16
    2.3       Competitive Benchmarking ..................................................................................................................................17
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ..........................................................................................................................................19
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.5       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 23
5     SWOT Analysis ...................................................................................................................................... 24
    5.1       SWOT Analysis - Overview .................................................................................................................................
								
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