Support services group Serco (LON:SRP) reported better-than-expected trading and said it was on track to hit full year targets.
The group, which was hit by problems with UK government prisoner tagging contracts, said business in the year so far had been slightly better than anticipated.
It signed contracts worth about £1bn during the first half, although it said the period was relatively quiet, as expected, with few major bidding outcomes due.
Its biggest deals were a £120mln contract with the Saudi Railway Company and for a new district general hospital for NHS Dumfries and Galloway.
Most of the total signed value related to securing existing relationships, involving extensions or successful rebids.
Serco said it was considering several options for potentially offloading its offshore private sector business process outsourcing (BPO) business, the main elements of which are the former Intelenet business.
It said it was making good progress managing the process of exiting loss-making contracts in the rest of its private sector BPO business, which comprise mainly UK onshore operations, and it expected the run-rate of losses from these contracts to be significantly lower in 2016 than in 2015.
It said annual revenue expectations were unchanged at about £3.5bn, with likely trading profit of about £90mln and pre-tax earnings before interest, depreciation and amortisation of about £160mln, not including any adjustment for potential disposals in the rest of 2015.
Chief executive Rupert Soames said: "We have ended the first half in reasonably good order and are making progress in implementing our plans. Whilst our recovery is at an early stage, and there will be bumps along the road, I am confident we are doing the right things, with a stronger balance sheet and supported by an excellent management team."