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Serco Stock Plunges to Its Lowest Level Since August

Serco shares plunged to the lowest level since August after the British public sector outsourcing group posted a bigger-than-expected decline in profits and kept its 2017 outlook unchanged.

Serco (SCGPY)  shares plunged to the lowest level since August Wednesday after the British public sector outsourcing group posted a bigger-than-expected decline in profits and kept its 2017 outlook unchanged.

The FTSE 250 company said revenues for 2016 came in at £3.05 billion ($3.8 billion), a figure largely in-line with analysts' estimates, as underlying profits fell to £82 million despite a positive currency headwind.

Serco shares fell more than 14% in the opening of trading in London, the biggest single-day decline in two years, to change hands at 126.5 pence each and wiping out all of the gains recorded over the past three months.

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