Posted by: westlancashirerecord | November 18, 2018

Avoid Shares In Government Contractor Serco, Investors Are Warned

Shares in most Government contractors are too risky for private investors, an analysis of the industry has warned. In a report prepared for The Mail on Sunday by research group Equity Development , several firms were highlighted as ‘best avoided’ by investors including public service contractor Serco that provides leisure services around the UK.

Equity Development compares companies’ share price performance with the health of their balance sheets to produce a Performance Analysis Score of up to 100. Serco scored less than 10 which defines them as ‘high risk’. Serco said in August its first half profit was ‘starting to grow’ despite a 9 per cent slide in contract revenue.

Equity Development said investors should consider shorting Serco. You can imagine the panic in local councils like West Lancashire if Serco, paid circa £million a year for our leisure services, goes the way of Carillion.

Most recent “growth” provided by Serco includes the illegal new 9Hole junior golf course, now under a requirement to remove 16,000 additional cubic metres of landfill material for its breach of an approved planning condition, and the illegal proposed foot golf course covering the old driving range, now subject to the Breach of Condition Notice already served for which Serco Leisure Operating Ltd is automatically convicted.

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