SERVICES provider Serco announced improved results for the year to December 31 today.

The international operator, which is a 50% partner in the Merseyrail and Northern Rail franchises, achieved a 9% increase in annual sales to £4.32bn and a 20.8% boost to pre-tax profits, up from £177.1m to £213.9m.

It said it sees opportunities for new and existing markets from the emerging economic environment and the reform of public sector services, although it anticipates “headwinds” in the UK this year as the Government austerity measures and reforms take shape.

However, it said its involvement in different economies throughout the world provides resilience and overall growth potential.

Orders by December 31 stood at £16.6bn compared with £17.1bn a year earlier, but there is clear visibility on 92% of planned revenues for the current year, together with 77% for 2012 and 66% for 2013.

A “substantial pipeline” of £29bn of opportunities has been identified.

Serco operates Merseyrail and Northern Rail franchises in partnership with Dutch rail group Abellio.

It said Merseyrail was the UK’s most punctual railway in 2010 with 95.2% of trains on time, and the highest rated train company with a 93% customer satisfaction rating.

Northern Rail has extended its franchise by a further two years and Serco said its share of the extension is valued at about £530m.

Chief executive Christopher Hyman said today: “Our colleagues across the world deliver essential services and their achievements have led to a strong financial performance in very challenging times.

“We expect Serco’s position in new, diverse and expanding international markets to deliver ongoing benefits.”