Serco on track as 2010 starts well

11th May 2010 07:01

Service company Serco said it is on track to meet its financial guidance for 2010 after a strong performance in the first half of the year so far.The company, whose activities include operating London's Docklands Light Railway and prison vans, entered 2010 with a record order book of £17.1bn. It has signed contracts worth about £1bn so far this year, it said, including contracts help run Royal Air Force bases in Halton and High Wycombe and an air traffic control contract in the US.Serco says it is benefiting from demand for the efficient delivery of essential services as organisations look to make savings in the current economic climate.'Our breadth and depth of skills, coupled with our extensive and long-standing relationships, mean we are well placed to help governments and commercial organisations around the world improve the quality, productivity and efficiency of their essential services,' said chief executive Christopher Hyman.'Our substantial order book and pipeline of opportunities mean that we remain confident about our long-term prospects.'One development that may not bode well for Serco is the indecisive election result in the UK, which will likely mean that decisions on awarding government outsourcing contracts are delayed. Serco's fellow outsourcing group Capita did allude to the election though, saying: 'Although the future shape of the Government is still unclear, there remains an imperative to address the fiscal deficit in the UK.'Capita, whose activities include administering the payment of TV licenses, also said it had performed well in 2010 so far.