LONDON (Reuters) - Shares in British outsourcing firm Serco (L:SRP) jumped more than 6 percent in early trading after it posted a better-than-expected fall in revenue in its first half, allowing it to maintain its full-year profit guidance.
The company, which is taking steps to recover from a string of contract problems and scandals, said on Tuesday revenue fell to 1.8 billion pounds ($1.25 billion) for the six months ended June 30, compared to 2 billion pounds a year earlier.
"Our first half is slightly better than we thought it would be at the time of the rights issue earlier this year," Chief Executive Rupert Soames told Reuters.
"For the year as a whole, we are maintaining our guidance of 90 million of trading profit but probably at this stage, the risks are weighted to the upside."
Shares in the company rose as much as 6 percent in early trading, and were 3 percent higher at 129 pence by 0714 GMT.
Analyst Stephen Rawlinson at brokerage Whitman Howard said there was no rush yet to buy the shares at 125 pence, but he remained positive that the business would hit annual revenue of about 3.5 billion pounds and margins and annual growth of 5-6 percent by 2018.