* CEO says organic growth should top 10 percent each year
* Says cash-strapped governments are outsourcing more
* First-half profit up 43 percent, ahead of forecasts
* Raises half-year dividend 25 percent
* Shares rise 4 percent, hit highest since January
(Recasts, adds CEO, analyst comment, detail, shares)
By John Bowker
LONDON, Aug 26 (Reuters) - British support services company Serco Group Plc forecast double-digit revenue growth in coming years as governments outsource work to save cash, helping boost its shares more than 5 percent to a seven-month high.
The group, which runs prisons in Australia, air traffic control towers in the United States and tug boats for Britain's Royal Navy, said first-half revenue rose 11 percent on a like-for-like basis, which could be repeated in the medium term.
"We have excellent visibility. There is increasing pressure on governments around the world to do more with less due to the fiscal crisis ... they are looking for people with a good track record for service," Chief Executive Chris Hyman told Reuters.
"We will see double-digit organic revenue growth over the next few years," he added.
Recent new government contracts, which in many cases run for decades, include deals to operate Australian immigration centres and British schemes to help the rising number of unemployed get back to work.
Serco shares, part of the FTSE 100 index and up more than 10 percent this year, were up 7 percent in early trade at their highest since January. They were 4 percent higher at 473.2 pence by 0901 GMT, valuing the company at around 2.2 billion pounds.
Serco said adjusted operating profit for the six months to end June rose 43 percent to 110 million pounds ($180 million). That compared with analyst expectations of 102.4 million, according to data provided by the company.
Serco said it would increase its half-year dividend 25 percent to 1.85 pence a share.
"The shares trade on ... not much of a premium for a company with double-digit organic sales growth and rising margins. We think the story of public sector outsourcing is a good one," Cazenove analyst Robert Plant said in a note.
Hyman said the group was keen to enter new markets, notably the business process outsourcing (BPO) sector, which handles IT for large companies and government departments.
He said the group would make acquisitions in this market if deals come up. Serco bought U.S. services firm SI International for $423 million last year, adding around a third of the 30 percent first-half revenue increase to 1.95 billion pounds. (Editing by Paul Hoskins and David Holmes) ($1=.6115 Pound)