Serco confident of double-digit revenue growth

LONDON (Reuters) - Support services group Serco (SRP.L) said on Tuesday it has continued to perform strongly since its results in February and is on track to deliver in line with its expectations for 2008.

The firm, which operates the Docklands Light Railway, said it remains confident of delivering double-digit revenue growth for the foreseeable future and a 30 basis point increase in profit margins for this year and next.

Serco said growth was underpinned by its increased pipeline of opportunities both in the UK and abroad, which stood at 27 billion pounds at the end of 2007.

So far this year, the company said it has signed contracts valued at 1 billion pounds, including "significant" wins in new markets.

Serco highlighted its contract with the Dubai Government Roads and Transport Authority (RTA) to operate and maintain the first two lines of the new Dubai metro, which was signed in April. The contract is valued at around 500 million pounds over 12.5 years, the company added.

The support services group said its largest opportunity this year will be its bid, as part of a consortium, for the multi-billion nuclear decommissioning contract at Sellafield. It expects a winning bidder to be announced in the third quarter of 2008.

(Reporting by Marc Roca, Editing by Mark Potter and Erica Billingham)