UK's Serco sees North American market driving first-half growth on defence contracts
June 26 (Reuters) - British outsourcing firm Serco (SRP.L), opens new tab said on Thursday that it expects its North American market to drive organic growth in the first half of 2025, fuelled by a high volume of defence contracts secured last year.
Serco, which provides defence, security, immigration, health and transport services for governments, has positioned itself to benefit from geopolitical tensions, as countries ramp up defence budgets to strengthen their military and security services.
With its recent acquisition of Northrop Grumman's (NOC.N), opens new tab Mission Training and Satellite Ground Network Communications (MT&S) business in May, defense has become Serco's largest sector, now accounting for around 40% of total revenue.
For the year ending in December, Serco reaffirmed its underlying operating profit forecast of around 260 million pounds ($356.41 million), but raised its organic sales growth outlook to about 1%, supported by improved immigration business and continued organic growth in the UK.
The company also named Keith Williams as board chair-designate, set to succeed John Rishton, who will step down on December 31.
($1 = 0.7295 pounds)
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