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Support services group Serco has announced a jump in pre-tax profits of almost 38% as their number of council contracts continues to grow. The group revealed last week in their preliminary results for 2006 that pre-tax profits had risen from £77.9m in 2005 to £107.4m in 2006. Revenue grew by 12.7% in the year, from £2.26bn in 2005 to £2.64bn in 2006, and the group had an order book of £13.9bn on December 31. The company has £3.5bn of contracts at preferred bidder stage and £23bn of further opportunities identified. ‘I am delighted with the company's performance in 2006,' said executive chairman, Kevin Beeston. ‘The strength of Serco's reputation and our expertise and ability to deliver high-quality service have seen us deliver tremendous outcomes for customers and excellent results for investors. ‘I am excited by our performance and by the range of opportunities available to us that position us for strong growth. We remain confident of maintaining double-digit growth and improving margins.' Serco signed a number of important deals last year, including a £400m contract Docklands Light Railway and a £69m contract with the London Development Agency. Serco was praised by CBI director general Richard Lambert in January for its contract with Breckland DC. The company has given residents disposable cameras to residents to identify ‘grot spots' which need cleaning. In December 2006, Serco launched a strategic PFI investment partnership with Infrastructure Investors Limited Partnership (I2). Under the partnership, I2 will provide private equity investment for future PFI projects for which Serco bids. ‘This strategic partnership enhances our capacity to innovate and compete in the PFI market and ensures our customers continue to receive the quality service they expect and deserve.'

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BUSINESS

SERCO's profits up 38% with PFI

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