AN outsourcing firm running a North-East fire safety base says its turnaround plans are getting the business back on track.

Serco says trading has been better than expected in the half-year, with profit expected to remain flat at about £45m.

Bosses say the improvement should see the group meet full-year expectations for earnings of around £90m, a marked improvement on the £1.3bn operating loss suffered last year.

Serco is known across Europe for its International Fire Training Centre, at Durham Tees Valley Airport, which has trained firefighters from France, Germany and Poland.

However, the wider group has suffered a torrid couple of years after admitting in July 2013 it had charged the Government for tagging thousands of criminals who were dead or non-existent.

But, Rupert Soames, group chief executive, said it was turning the corner.

He added: “While our recovery is at an early stage, and there will be bumps along the road, I am confident we are doing the right things, with a stronger balance sheet and an excellent management team.”