LONDON, Sept 4 (Reuters) - Serco said on Thursday it had been selected as preferred bidder to continue running Australia’s onshore immigration detention services, some rare good news for the British outsourcer after a disastrous year.
The firm, which is in the middle of an overhaul after contract problems, a government ban and falling margins led to a string of profit downgrades, said a new contract would be signed pending commercial negotiations.
The immigration contract, Serco’s largest, was signed in 2009 but is up for renewal and is seen by analysts as a key deal for the firm to retain.
A commitment by Australia’s government to stem the flow of asylum seekers had led Serco to warn that the volume-related work could decline sharply in 2014. (Reporting by Neil Maidment; Editing by Sonya Hepinstall)