Serco and Capita expected to announce drop in sales

INVESTORS in two of the biggest outsourcing companies will be hoping the firms can provide reason for optimism this week as they face challenges in the sector and higher costs next year.

- Henry Saker-Clark

London-listed Capita and Serco are both predicted to point towards dips in sales when they provide trading updates for shareholders.

Capita will give a pre-close trading update tomorrow, with Serco set to do likewise on Thursday. Both firms have undergone major transformation in recent years in the face of significant upheaval in the sector.

Serco is expected to tell shareholders it will report marginally lower revenues for the 2024 financial year. Analysts at investment group Shore Capital projected an almost 1% decline in revenues to £4.83billion for the period.