Outsourced services provider, Serco is expecting strong growth in revenue during the existing year (2010) after reporting 21 percent increase in first-half year profit.

The adjusted pre-tax profits are in line with forecast by Charles Stanley, increased from £92.3m during last year to £110.2m in the six months of the year to 30 June.

The profit figures have crossed the Panmure Gordon's forecast of £104m.

The interim dividend has increased from 1.85p a share to 2.20 pence per share with an increase in revenue from £1.95bn to £2.14bn.

The company provides train services, runs new bicycle rental scheme in London, and operates prisons in UK as well as in Australia.

In the UK and continental Europe, the revenues of the group in its civil government division have increased by 13.6 percent through cost cutting and improving efficiencies.

The company has diversified its services, and by expanding its market in overseas, it has earned 40 percent of the total sales from international market.

The full year revenue of the group is expected to touch £5bn in 2010, and the adjusted operating profit margin is expected to increase by 6.3 percent by the end of 2012.