Serco profit hit by reshuffle and slow U.S. markets

The British firm, which runs services from London's light rail to prisons and air traffic control centres around the world, on Wednesday reported an adjusted pretax profit of 102.1 million pounds for the six months to the end of June, in line with analyst forecasts.

Serco said it had won 4.2 billion pounds worth of work in the period, compared with 2.5 billion a year ago, and had increased its order book - the value of future revenues based on all existing signed contracts - to 19.4 billion.

British and U.S. markets have been hit by budgetary delays with austerity measures in the UK slowing the flow of public sector work and a presidential election impacting on U.S. spending plans.

Revenue rose 4.3 percent to 2.34 billion pounds, underpinned by last year's acquisitions and good growth in Australasia and the Middle East, it said.

Sales in the U.S. slipped 16 percent, while in its core UK market, where it said conditions were improving, revenue dropped 1 percent.

Reorganisation costs included the creation of a global business process outsourcing (BPO) division, where Serco is targeting more back and middle office outsourcing work and avenues into private sector markets.

Shares in Serco, which makes around 40 percent of its earnings overseas, closed at 562.5 pence on Tuesday, valuing the business at around 2.8 billion pounds.

(Reporting by Neil Maidment; editing by Rhys Jones)