DAVY VIEW

We have adjusted Serco forecasts, broadly in line with guidance for 2022E. The strength of today’s statement is clear, and it is tough not to conclude that each of the three key geographic areas is becoming increasingly ingrained into its customer base. It is also worth noting that these upgrades have been achieved without further contract wins year-to-date, and the overall 2022E EPS upgrade since the end of Q1 2021 (when the upgrade cycle started to come through) has been 34% on our numbers.