by business editor Trevor Sturgess

Serco, which is due to take over Business Link Kent this Spring, has been tipped as a winner for 2010.

Share experts at Galvan Research say the business will prosper this year on the back of public sector cutbacks.

Serco Group already operates Business Links in London and the South West. which provide advice and support to firms and entrepreneurs, and will run Business Link Kent, based in Kings Hill, West Malling, from April. It also operates Docklands Light Railway.

In last month’s pre-close trading update, the group said it was on track to deliver on its revenue projections and saw further potential opportunities in both existing and new markets.

It said: "The significant challenges facing our customers are driving their need to improve the efficiency and productivity of essential services, which together with our strong capabilities, gives us confidence in our prospects for the future."

Shares in Serco have been on a rising trend since September, closing last week (31) on 530p. Andrew Gibson, head of Galvan Research, said it took the view that Serco’s pre-close trading statement markedly understated the actual prospects for the outsourcing group, considering that double-digit revenue growth is on the cards.

He said: "Prospective public sector budget cuts of up to 20 per cent over the next three years should ensure that the services of the DLR operator in London should be in progressively more demand."

Serco runs scientific establishments, traffic management systems, railways, border protection and administration centres. It also detains offenders, helps hospital patients and supports the armed forces.

Serco releases its 2009 full year results on February 26.