SERCO analysis

Essay by lebronlynch December 2012

download word file, 9 pages 0.0

Abstract

The purpose of this report is to provide a general overview to our client on Serco PLC, presenting the relevant financial information that may aid our client's future investment decisions. This report is designed to be informative and any decision taken based on this report would be solely the responsibility of our clients. The overall background of the company covers information such as its history, general strategies, and competitors. We recognise that corporate governance is an essential part of a company's prospect and within this report we analyse Serco's overall management system. Finally, the financial aspect of the company is going to be evaluated thoroughly as well as a final recommendation.

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Contents

Introduction

Background of the Company……………………………………4

Strategies………………………………………………………………..4

Markets and Customers…………………………………………..4

Competitors…………………………………………………………….4

Corporate Governance

Serco's Corporate Governance System…………………….5

Accountability……………………………………………………….…5

Regulations………………………………………………………………6

Financial Analysis

Financial Gearing…………………………………………………..…6

Profitability………………………………………………………………7

Investment Ratios…………………………………………………….7

Strengths and Weaknesses……………………………………………….8

Strengths………………………………………………………………….8

Weaknesses……………………………………………………………..9

Conclusion………………………………………………………………………..9

Appendices………….………………………………………………………….10

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Introduction

1.1 Background of the Company

Serco group PLC is a public limited company founded in 1929 in Hampshire, United Kingdom. The company provides support for customers in large private sectors as well as essential public government sectors including education, defence, local authority and government. Their role is to ensure that these sectors operate efficiently whilst improving their quality and service.

The company began in 1929 under the name 'Radio Corporation of America RCA' and formed a UK subsidiary. Expansion initially started when a contract started with the RAF where their services began with providing the technical facilities for the RAF. In late 1988, the company achieved a full listing on the London Stock Exchange under its new name of Serco Group PLC where expansion and diversification followed. In 2010 Serco made acquisitions with RB solutions to strengthen their market position enabling them to acquire 3 new contracts in 2010 with new...