Serco reaffirms full year profit expectations

LONDON, July 1 (Reuters) - British outsourcing firm Serco reaffirmed its full year guidance on Wednesday but expected a slowdown in first half revenue due to a reduction of work from previous contracts.

The company said it expected revenue in the first half of its financial year to be around 1.7 billion pounds ($2.67 billion), compared to 2 billion pounds for the same period a year earlier.

Revenue for the full year was likely to be around 3.5 billion pounds and trading profit around 90 million pounds, but Serco said its expectations did not include any adjustment for disposals.

The firm, which is undergoing a mass overhaul after a disastrous period of contract problems and scandals that have strained its ties with the British government, had warned in March that it was unlikely to see a return to growth for another three years, after it reported a dramatic collapse in profits. ($1 = 0.6370 pounds) (Reporting by Li-mei Hoang; editing by James Davey)