StockMarketWire.com - Outsourced services group Serco upped its annual profit and revenue guidance, though it added that some of the drivers of the upgrade were unlikely to be repeated.

Underlying trading profit for the year through December was now expected to be at least £225 million, up from previous guidance of around £200 million and the prior year's £163 million.

Revenue was now expected to be around £4.4 billion, up from previous guidance of around £4.3 billion and the prior year's £3.9 billion.

'Several factors have driven this improved performance, most of which are unlikely to repeat,' Serco said.

A stronger-than-expected performance had been driven in part by high volumes of work in the UK and Australia related to Covid-19 support to governments.

Secondly, a number of contracts had performed better than hoped, notably immigration-related contracts in the UK and Australia, and a healthcare insurance eligibility services contract in the US.

'Finally, a number of commercial discussions that we had expected to complete in 2022 are now anticipated to be finalised in the current financial year,' Serco said.


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