UPDATE 2-Serco says on track for strong 2010 revenue growth

* Eyes opportunity in helping customers achieve efficiency

* 2010 growth helped by order book and new contracts

* Shares down 2.6 percent, underperform sector

LONDON, June 29 (Reuters) - Support services group Serco (SRP.L) 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 United States and tugs boats for Britain's Royal Navy, said on Tuesday 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," Serco said in a trading update on Tuesday.

Securing big contracts to maintain and operate Dubai's metro, running immigration detention centres in Australia and schemes to help unemployed Britons get back into work, have helped underpin the company's performance.

But shares in Serco, one of eight support services firms listed on the FTSE 100 index .FTSE, were down 2.6 percent to 607.5 pence at 0952 GMT, underperforming the sector .FTNMX2790 which was down 1.8 percent.

Some analysts said Serco's upbeat statement was unsurprising and offered little further incentive to buy its stock.

"Although (Serco) has said it is progressing well, I would put it down to investor preference, or they think there's no need to buy more at this stage," Henry Carver, analyst at KBC Peel Hunt said.

"Serco remains a quality operator but with a full valuation and after strong performance, our stock preference remains elsewhere," Andy Brown, analyst at Panmure Gordon, said in a note.

CUTS COULD BE BOON

Britain's new coalition government is planning substantial cuts to spending, a policy which has already stung companies such as Connaught CNT.L which issued a profit warning on Friday because of deferrals on contracts to provide maintenance on social housing.

Shares in Connaught extended losses by a further 23 percent to 104 pence at 0922 GMT, providing the main drag on the support services sector as a whole.

But some companies such as Mouchel (MCHL.L) and Mitie (MTO.L) have said the squeeze could work in their favour as government offices opt for more outsourcing in an effort to drive down costs.

Serco also sees itself benefitting from Westminster's spending squeeze.

"The opportunities we see to improve productivity and achieve significant efficiences for them (customers) in the delivery of front-line essential services ... continue to give us confidence in our prospects for the future," Serco said. (Reporting by Golnar Motevalli; Editing by Jon Loades-Carter)