Serco shares drop 10% after losing major Australian immigration contract renewal
Serco Group (LON:SRP) on Friday said it was unsuccessful in securing the renewal of its longstanding immigration detention contract with the Australian government, sending its share down over 10%. “We calculate a potential c£15m (5% group) hit to EBITA in FY25 and potentially similar level in FY26, dependent on offsets,” said analysts at Jefferies in a note. With an estimated EBITA margin of 10.9% on the contract, this loss removes a relatively high-margin income source for Serco, compared to its group average margin of around 5%.