LONDON, July 4 (Reuters) - British outsourcing firm Serco , which has been hit by a string of contract problems, said on Friday it had lost its contract to run London’s Docklands Light Railway, in a big blow to the group.
The company said its bid to continue running the 125 million pounds ($212.7 million) a year contract, which it has operated, maintained and marketed since 1997, was unsuccessful.
Serco said the DLR franchise generated revenue of around 90 million pounds, or 2 percent of revenues in 2013, at a margin that was significantly below the average level the group achieves on its contracts.
Serco, which was up against Stagecoach and joint venture Keolis/Amey Rail, will hand over the franchise on December 7. ($1 = 0.5877 British Pounds) (Reporting by Li-mei Hoang; editing by Kate Holton)