Serco trundling on

Outsourcing leviathan Serco is on target to deliver a performance in line with expectations in the current financial year, despite continued tough trading conditions on both sides of the Atlantic.

"While short-term headwinds remain, particularly those facing the US federal contracting industry, longer term developments in our markets and our strong positions are all encouraging factors. This underpins our confidence that the portfolio will sustain growth well into the future," said Serco's chief executive, Christopher Hyman.

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"Assuming the impact of ongoing economic challenges is manageable, our guidance remains that by the end of 2012 we expect increases in revenue to approximately £5bn and in adjusted operating profit margin to approximately 6.3% (excluding material acquisitions, disposals and currency effects)," the company's trading statement said.

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