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Serco insists it is on track for strong revenue growth in 2010

Serco yesterday said it was on track for strong revenue growth in 2010, predicting its future performance would benefit from client demand for efficiency amid a state spending squeeze in Britain.

UK-based Serco, which runs prisons in Australia, air traffic control towers in the US and tugs boats for the Royal Navy, said its strong performance was supported by a substantial order book. “We remain on track to deliver our financial guidance for 2010, which is for continued strong organic revenue growth and further progress this year towards our 2012 margin guidance,” it said in a trading update.

But shares in Serco, one of eight support services firms listed on the FTSE 100 index, finished down 3.3 percent at 603p, underperforming the sector which was down 1.8 per cent.