AN outsourcing firm behind a fire safety base has hailed a “sliver of reward” in its transformation plans.

Serco Group says revenues and profits will increase thanks to stronger contracts and lucrative legacies of former agreements.

The business, which runs the International Fire Training Centre, at Durham Tees Valley Airport, is recovering from a torrid spell after admitting in 2013 it had charged the Government for tagging thousands of criminals who were dead or non-existent.

However, Rupert Soames, chief executive, who is leading its revival, today (Thursday, June 30) said the initial signs were positive.

He said Serco expects revenues in 2016 to hit £2.9bn, with underlying trading profits rising from £50m to around £65m.

He added the company was benefiting from a favourable settlement after ending its Northern Rail partnership with Abellio.

Mr Soames said: “It is encouraging to announce an upgrade to our guidance, though we must remain aware our profits are a sliver of reward between two very large numbers - revenue and costs - tiny percentage movements in which can lead to large percentage movements in profits.

“There remains much to do to complete our transformation but we are making good progress.”

Serco’s Durham Tees Valley Airport base has trained firefighters from across Europe, including teams who now use skills learned in the North-East on rescues in France, Germany and Poland.