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 .................................................................................................................................