SERVICES group Serco will tell shareholders today that it is on track to deliver forecasts for the current financial year.

The international services provider is a 50-50 partner in the joint venture with Dutch rail company Abellio that runs the Merseyrail franchise.

Ahead of its annual general meeting today Serco updated the market on its performance since January 1, saying its financial position is strong and supported by good cash flow.

“We remain encouraged by the developments in our markets which underpin our guidance for 2012 and sustained growth beyond,” its statement said.

This involves work it expects to pick up in the UK, despite short-term problems after the coalition Government’s austerity measures.

It said: “In the UK, although we are facing short-term headwinds resulting from the Government’s austerity measures, we expect that this will change, based on the Government’s intention for greater involvement of the private and voluntary sectors in the delivery of public services.

“We believe that the Government is demonstrating determination and pace in implementing its policies which will result in more opportunities in the medium term.”

Serco’s order boo was £16.6bn at December 31 and its pipeline of identified opportunities amounted to £29bn.

It said since the beginning of the financial year it has been awarded £1.6bn of contracts, comprising signed deals valued at £1.4bn and preferred bidder appointments valued at £200m.

Chief executive Christopher Hyman said: “I am pleased with the resilience the group has shown in the year to date.”