The Serco Board has recommended a final dividend of 2.82 pence per share. The dividend, subject to shareholder approval, will be paid on 9 May 2025, with an ex-dividend date of 10 April 2025 and a record date of 11 April 2025
Other financial highlights include:
•Revenue: £4.8bn in 2024, in line with guidance; improving organic trend as they moved through the year led by their North American Defence business.
•Underlying operating profit: £274m, up 10% in the full year, and an increase of 30% in the second half compared to the same period in 2023.
•Margin: 60 basis point increase in full year underlying operating profit margin to 5.7% with progress in all regions, reflecting ongoing focus on efficiency and productivity.
•Reported operating profit: ~£130m, reduction due to an exceptional £115m non-cash goodwill impairment charge in Asia Pacific.
•Order intake: +7% to £4.9bn, book-to-bill of 102%, order book of £13.3bn.
•Cash flow: Very strong free cash flow at £228m, ahead of guidance of ~£170m, trading cash conversion has averaged more than 100% since 2019, ahead of their medium-term guidance of 80%+.
•Strong financial position: adjusted net debt £100m, £45m lower than prior guidance, leverage c.0.3x net debt to EBITDA, and pro-forma net leverage of 1.2x including proposed acquisition of MT&S. The Board will review the capital position again at the half year.
•Attractive shareholder returns: £140m share buyback in 2024, taking the total amount returned to shareholders through buybacks to £340m since 2021.
