4th Sep 2014 07:34
LONDON (Alliance News) - Outsourcing company Serco Group PLC Thursday said it has been selected as the preferred bidder to continue providing onshore immigration services to the Australian government, a contract that has proved problematic in the past because it provided less work than initially expected.
Australia's Department of Immigration and Border Protection said Serco has been selected as the preferred bidder to retain its contract to provide facilities and detainee services, the company said in a statement.
Commercial negotiations and the procurement process for the contract are ongoing, Serco said, and are expected to conclude in the coming few months. Serco's appointment to handle the contract will depend on the outcome of those negotiations, it said.
At the start of the year, Serco issued a profit warning, citing a bigger-than-expected fall in volumes in its Australian immigration services contract among the reasons for its woes.
However, Serco shares were up 3.6% in early trade on Thursday, putting it among the top five risers on the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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