Serco loses Docklands Light Railway franchise

Serco, the troubled outsourcing group, has lost control of the Docklands Light Railway in London, which it has run for 17 years.

Serco said the franchise was worth £90m a year, 2pc of its revenues, although it was "at a margin that was significantly below the average level the group achieves on its contracts".

Stagecoach, the FTSE 250 transport group, also missed out on the bidding, and said it was "disappointed" at the decision.

Keolis already runs several rail franchises as part of a joint venture with the Go-Ahead Group and is in the running to operate Crossrail.

David Stretch, managing director of Serco's Transport business, said: "We are obviously disappointed that we have not been selected to continue to manage and operate the DLR.

"We will continue to provide DLR passengers with the best possible service until the new operator starts later this year and we will work closely with them to ensure a seamless handover."

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