Shares in controversial outsourcing firm Serco Group PLC (LON:SRP) nudged higher after it won a two-year contract extension to continue running the Dubai Metro rail network.
The total value of the fixed base fee for the contract extension is roughly £140mln.
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The contract extension includes the operation and maintenance of the Red Line expansion of the rail system, which is currently under construction.
The test-run of the expanded service is expected to start in February 2020 in readiness for full operation ahead of Expo 2020 which begins in October.
“This contract demonstrates the high confidence that RTA [the Roads and Transport Authority] has in Serco to continue delivering world-class levels of safety, operational performance and customer service,” said Rupert Soames, the chief executive officer of Serco.
Serco has a lot of experience in running railway networks, including 17 years of running the Docklands Light Railway in London’s east end before it lost the contract in 2014.
Shares in Serco were up 1.3% at 129.7p.