June 26 (Reuters) - British outsourcing firm Serco ( SECCF )

said on Thursday that it expects its North American

market to drive organic growth in the first half of 2025,

fuelled by a high volume of defence contracts secured last year.

Serco ( SECCF ), which provides defence, security, immigration, health

and transport services for governments, has positioned itself to

benefit from geopolitical tensions, as countries ramp up defence

budgets to strengthen their military and security services.

With its recent acquisition of Northrop Grumman's ( NOC )

Mission Training and Satellite Ground Network Communications

(MT&S) business in May, defense has become Serco's ( SECCF ) largest

sector, now accounting for around 40% of total revenue.

For the year ending in December, Serco ( SECCF ) reaffirmed its

underlying operating profit forecast of around 260 million

pounds ($356.41 million), but raised its organic sales growth

outlook to about 1%, supported by improved immigration business

and continued organic growth in the UK.

The company also named Keith Williams as board

chair-designate, set to succeed John Rishton, who will step down

on December 31.

($1 = 0.7295 pounds)