The Serco Group's rebid for the franchise to manage, operate and maintain the Docklands Light Railway (DLR) has been turned down by Transport for London (TfL).

The current franchise, which was due to end on 14 September, has been extended to 7 December 2014, when the service will transfer to the new franchisee.

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In 2013, the DLR franchise generated revenue to Serco of approximately £90m, or 2% of the Group's overall revenues, at a margin that was significantly below the average level the Group achieves on its contracts.

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. I would like to thank all our colleagues who have worked hard to deliver what is a world class service and we are very proud of what we have all achieved for the citizens of London over the past seventeen years."

(CD/MH)