Serco is a government based contract operator based in the UK, with worldwide operations.

Serco Group plc is a British company with headquarters based in Hook, Hampshire, England. Serco manages over 500 contracts worldwide. The company employs over 50,000 people. Serco operates in the following sectors of public service provision: Health, Transport, Justice, Immigration, Defence, and Citizens Services. The company has had a wild ride in the last 12 months falling over falling over 42% on covid news, then bouncing 70%, then falling another 37%. At current we are up 34% from this low and upside potential is there.

The financials of Serco are good. Current market capitalisation is £1.6bn with 2020 turnover at £3.84bn and a profit after tax of £106m. These numbers are similar to 2019, showing how the pandemic hasn't really affected Serco. Looking at the balance sheet, total assets amount to £2.4bn, with cash at £335m and contracts receivable at £614m (which is very good for the forward year 21). Liabilities are also good £1.65bn of which £585m is contracts payable. This leaves net positive assets of £715m for the company.

From a technical aspect Serco is mixed in a range-bound trading over the last 12 months, with upside potential of 25% (back to yearly swing highs). On the weekly timeframe MACD has turned positive with the RSI reading a nice 56.4 showing good upside potential. To the downside however, support sits at £1.22 followed by swing lows of £1.06. A break below £1.06 could take Serco to 97p. Looking at the upside initial targets would be the weekly highs of £1.42 followed by yearly highs off £1.66. Serco may be a slow moving stock, but could result in a nice return. downside risk still play though.

Overall Serco relies quite heavily on the governments across the globe, which is quite a good trait for this company to have.The Technical picture looks positive and the financials of Serco are pretty good, with no major issues in income neither balance sheet statements.