Top 3 Markets:

1. United Kingdom: approx. 40%
2. North America: approx. 30%
3. Asia-Pacific: approx. 20%

Revenue distribution by sectors:

• Defense: approx. 35%
• Justice and Immigration: approx. 25%
• Transport: approx. 20%
• Health: approx. 15%
• Citizen Services: approx. 5%

Serco Group plc generates the majority of its revenue from the United Kingdom, followed by North America and the Asia-Pacific region. These markets are crucial for the company as they generate the largest portion of its income.

The revenues are distributed across various sectors, with the defense sector accounting for the largest share. This demonstrates Serco's strong position in the public services sector and its collaboration with governmental institutions.

Production: Globally distributed, with a focus on the United Kingdom, Europe, Asia-Pacific, and North America.

Serco Group plc is an internationally operating service company specializing in outsourcing services for governments and organizations. It does not produce physical products in the traditional sense, but offers services in areas such as defense, transportation, health, and justice.

The services are provided in various regions worldwide, with a focus on the United Kingdom, Europe, the Asia-Pacific region, and North America. Serco operates numerous locations to offer its services efficiently and tailored to local needs.

Revenue Growth: 10.5% (2024)

Serco Group plc pursues a growth strategy focusing on expanding into new geographic markets and diversifying its service offerings. In 2024, the company experienced a revenue growth of 10.5%, attributed to successful acquisition of new contracts and expansion of existing partnerships.

A key element of the strategy is increased investment in digital technologies and innovations to enhance the efficiency of their services and unlock new business opportunities. Additionally, Serco is aiming to strengthen its position in the defense, justice, and healthcare sectors to benefit from the increasing expenditures in these areas.

The company's management has also emphasized that sustainability and social responsibility are becoming increasingly important, highlighted by the implementation of environmentally friendly practices and the promotion of an inclusive corporate culture.

Main Commodities: Services and Technology

Countries of Origin: Great Britain, USA, Australia, Middle East

Serco Group plc is a service company specializing in outsourcing services for governments and organizations worldwide. Therefore, the company does not import physical commodities in the traditional sense. Instead, Serco focuses on importing services, technology, and expertise.

Serco's main markets are Great Britain, the USA, Australia, and the Middle East. In these regions, the company sources specialized services and technological solutions to enhance and expand its outsourcing services.

Market share: 5% in the global outsourcing market (2024) EBITDA margin: 8.5% (2024) Contract backlog: £14.1 billion (2024)

Serco Group plc has a significant competitive advantage due to its strong position in the global outsourcing market, especially in the public sector. The company benefits from a diversified contract backlog that secures long-term revenues.

The EBITDA margin of 8.5% demonstrates solid operational efficiency that is competitive in industry comparison. Serco's ability to efficiently deliver complex services further strengthens its market position.

Additionally, geographic diversification in Europe, the Middle East, Asia-Pacific, and North America supports risk mitigation and provides growth opportunities in various markets.

Institutional Investor Share: approximately 70% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant transactions in the last year (2024)

The institutional investor share in Serco Group plc traditionally stands at around 70%, indicating the confidence of large investors in the company's long-term stability and growth potential. These investors include pension funds, investment funds, and other institutional investors who typically take a long-term perspective.

In 2024, there were no significant insider transactions, suggesting that the management and other insiders did not make significant changes to their holdings. This could be seen as a sign that the management has confidence in the current corporate strategy and future development.

Market share of Serco Group plc: Estimate 5% (2025)

Main competitors and their market shares:

1. G4S plc: Estimate 10%
2. Capita plc: Estimate 8%
3. Mitie Group plc: Estimate 7%
4. Interserve plc: Estimate 6%
5. Sodexo S.A.: Estimate 5%

Economic moat of Serco Group plc:

Serco Group plc operates in the service industry, specializing in outsourcing services for governments and businesses. Serco's economic moat mainly consists of long-term contracts with government institutions, providing a stable source of revenue. These contracts are often complex and require specific expertise, offering some protection against new market entrants.

Compared to its competitors, Serco has a moderate economic moat. Companies like G4S and Sodexo may have stronger economic moats due to their global presence and diversified services beyond security and catering. This diversification provides them with a broader base and potentially more stable revenues.

Overall, Serco has a significant but not insurmountable advantage. Competition in the industry is intense, and companies must continuously invest in innovation and efficiency to maintain or expand their market share.

Revenue Growth: 7.5% (2024) EBITDA Margin: 8.2% (2024) Order Backlog: £14 billion (2024)

Serco Group plc recorded a revenue growth of 7.5% in 2024, driven by strong demand in its core markets, particularly in the public sector. The EBITDA margin of 8.2% indicates that the company operates efficiently and has good cost control.

The order backlog of £14 billion suggests a solid future revenue stream, which is a positive signal for investors. Serco has also been consistently investing in technology and innovation in recent years to enhance its services and explore new market opportunities.

Overall, Serco demonstrates stable financial performance and a strong market position, indicating a potentially good investment opportunity, especially for investors interested in long-term engagements in the service sector.

Dividend Yield: 2.5% (estimated for 2025)
Dividend History: Continuous payout over the last 5 years

Serco Group plc has regularly distributed dividends in recent years, demonstrating a certain reliability in its dividend policy. The estimated dividend yield of 2.5% for 2025 indicates that the company continues to strive to return a portion of its profits to its shareholders.

The continuity of payouts over the past five years suggests a stable financial foundation and a strategic direction that could enable dividend payments in the future as well. This is particularly important for investors who rely on regular returns from their investments.