Serco "on target" thanks to contract wins

Outsourcing group Serco said it was on track with its 2011 expectations after some strong contract wins and was well placed to achieve future revenue targets.

Serco, which among other things runs London's cycle-hire scheme and Dubai's metro, said it had won £1.6bn worth of work since the start of its financial year on 1 January.

The group, which last month won two contracts under the government's welfare-to-work scheme, added it was well placed to achieve revenue of £5bn and an increase in adjusted operating profit margin to 6.3 per cent in 2012.

Revenue for 2010 was £4.33bn.

In the UK, Serco said it expected to benefit from increased contract opportunities in the medium-term as the government looks to outsource some of its national public services.

A government white paper outlining its plans for public service reform is due to be published in the summer.

The group said it was encouraged by IT opportunities in the Americas, justice and defence work in the Asia Pacific region and healthcare, transport and education in the Middle East and India.