Serco shares jump 7% on upgraded profit guidance

The Serco Group’s (LSE: SRP) share price is up 7% this morning, following the company’s announcement of an upgrade in its profit guidance.

The renowned outsourcer, which manages services for governments globally, revised its forecast for organic revenue growth and underlying trading profit, reflecting increased demand for its immigration and defence services.

The FTSE 250 listed contractor now expects its revenue to reach a minimum of £4.8 billion this year, compared to £4.5 billion in 2022. Simultaneously, it anticipates its underlying trading profit to rise to around £245 million.

Serco attributed this positive development to the strong performance of ORS, the European immigration services company it acquired in September. ORS has exceeded expectations, benefiting from robust underlying demand driven by global migration patterns.