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By | John Oates 1st March 2006 15:11

Serco results grow

Revs and profits up

Services giant Serco, which bought ITNET last year, managed to bring in £2.26bn in revenues - up 38 per cent - in the year ended 31 December 2005.

Serco made a profit before tax of £77.9m, an increase of 22 per cent on last year's figure of £64m. The company claimed organic growth of 19 per cent and win rates of over 90 per cent for existing contracts and over 50 per cent on new bids.

But analysts at Ovum were less impressed - although they applauded strong growth in the UK and US they said Serco had failed to extract the most value from ITNET. More details here.

Defence deals brought in £565.6m, an increase of 52 per cent and making up 25 per cent of total group revenues.

Revenue from the transport division grew even faster - 59 per cent year-on-year growing to £548.7m which makes up 24 per cent of group totals.

The acquisition of US firm RCI brought in £143.3m in revenues and Serco remains confident the Defense Department will continue to pay for private sector support.

Looking forward the company said it was confident of double-digit growth - on the 31 December the firm had £13.4bn in pre-orders. Serco works in local government, transport and defence.

It was the first set of books prepared under the International Financial Reporting Standards. Get more details hereand get Ovum's view here.®

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