Record level of contract wins and excellent operational performance
£5.8bn of awards (2011: £5.1bn); increase in order book to £19.1bn (2011: £17.9bn)
High revenue visibility (92% for 2013, 79% for 2014 and 70% for 2015)
Excellent service delivery across existing operations and major new contracts progressing well
Strong financial result for the year
Total revenue growth of 5.7% to £4.9bn; growth of 6.2% at constant currency
Organic growth of 3.3%, with excellent performances in AMEAA (up 22%) and Global Services (up 12%)
Adjusted operating profit growth of 9.9% at constant currency; margin increase from 6.2% to 6.4%
Adjusted earnings per share growth of 7.5% to 42.55p; growth of 8.7% at constant currency
Group free cash flow of £181.2m, with an exceptionally strong conversion rate of profits in the second half
Proposed 2012 total dividend of 10.10p up 20%; increase reflects new policy to accelerate dividend growth on the path to a higher payout ratio
Greater exposure to international growth markets and sectors
Growth prospects further underpinned by entry into new countries, services and private sector industries
31% total revenue growth in AMEAA increases region's exposure to 18% of the Group's portfolio
40% total revenue growth in our global Business Process Outsourcing (BPO) business increases non-frontline services to 15% of the Group's portfolio
These achievements, together with a return to organic growth in the UK, more than offset US challenges
Strategic position further improved through ongoing proactive portfolio management
Additional capabilities and market access from infill acquisitions such as Vertex and DMS Maritime
Exits from non-core operations reflect our ongoing focus on strategic fit, performance and returns
Leading BPO position after full integration of operations and successful launch of Global Services division
Extensive pipeline demonstrates attractive growth opportunities
Estimated £31bn pipeline reflects growing demand for efficient, high quality and innovative services
Positive developments opening up more frontline services markets; exciting new opportunities in AMEAA
Good longer term opportunities in Americas beyond the current tough US federal contracting environment
Excellent growth prospects in the global BPO market with both private and public sector customers
Confident of further growth and continued resilience of the Group
Strength of portfolio provides resilience and enhances growth potential
Group well positioned following excellent strategic and organisational progress in 2012
For 2013, expect a modest improvement in organic growth and operating margin to be broadly maintained
Beyond 2013, planning for continued delivery of strong financial performance
Confidence in outlook and strength of financial position underpin plans for higher dividend payout ratio
Christopher Hyman, Chief Executive of Serco Group plc, said: "Serco improves the quality and efficiency of services that matter to millions of people around the world, helping our customers to focus their precious resources on what they do best. To continue developing our business we are providing more support to our existing customers, offering more to emerging markets and improving our ability to provide more complex services. This has resulted in a strong year for us in 2012 despite some very real challenges; we won more work than ever, we entered new markets, we built more capabilities and we established a global BPO business. Our unique breadth and depth leaves us strongly positioned to meet the growing demand from around the world for our skills and services. This confidence in our business prospects underpins our new dividend policy and commitment to a higher payout ratio over the coming years.
