Serco meets forecasts and reiterates outlook despite "bumpy road" ahead

EDINBURGH, Feb 22 (Reuters) - British outsourcer Serco reported 2017 profit in line with its recently-upgraded forecast and reiterated its expectations for 2018, expressing confidence in a sector hit by the collapse of rival Carillion.

Revenues fell 2 percent to 2.95 billion pounds ($4.09 billion)in 2017 while underlying trading profit fell to 69.8 million pounds, at the top end of guidance which was upgraded in December.

Revenues in 2018 were expected to be 2.8 to 2.9 billion pounds, underlying trading profit to grow to around 80 million pounds, driven largely by cost savings, and it said it expected further good profit growth in 2019.

($1 = 0.7207 pounds) (Reporting by Elisabeth O'Leary; editing by Kate Holton)