Serco Group aims to post a mid-single digit growth in earnings with a financial outturn of about $523 million for the year, up from the $494 million in 2012.
The international government services provider cited contract delays, tightened budgets, fewer projects in the U.K. and Europe and the U.S. government shutdown as among the factors affecting its business, Serco said Thursday.
“Whilst we are clearly facing challenges and have experienced tougher conditions in recent months, we have still achieved ($4.8 billion) of contract awards in the year to date and made further progress in our strategy of creating a broader and more balanced portfolio,” said Ed Casey, acting CEO of the Serco Group.
“The Group’s opportunities in the large and growing markets in which we are represented around the world continue to provide good long-term growth potential,” Casey added.
Within the U.S., Serco won a potential five-year, $1.2 billion contract to help manage health program applications for the Centers for Medicare and Medicaid Services and a potential six-year, $355 million management services contract from the Virginia Department of Transportation.