SRP

Serco Group PLC

Industrial Goods and Services First-pass screen £2.8bn

400/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 55

Valuation 25% 30

Downside protection 15% 68

First-pass take

Stable government services contractor with strong order book (£14.5bn, 3x annual revenue) and 90%+ contract retention, but lacks AI exposure and modest operating margins limit leverage. Net debt and policy dependency offset by significant revenue visibility, though no valuation data available.

Flags

no-ai-strategygovernment-contractornet-debtlow-marginsno-valuation-data