2014 was a truly terrible year for Serco, marred by a number of contract scandals, including its £285 million prisoner-transfer contract with the UK government which was subsequently investigated by the City of London police.

The result? An operating loss of £1.3 billion - this accounts for the £656 million loss before exceptional items and the £661 million loss of exceptional items. Those figures represent quite a stark contrast to Serco's £236 million profit in 2013.

Rupert Soames, who became CEO at Serco in February 2014, said: 'There is a real sense that, having confessed our sins and in taking the punishment, we are now ready to start on the path to recovery.

'We have all we need: a good plan, strong management to execute it, and, following the successful completion of our proposed rights issue and refinancing, a balance sheet that is an appropriate foundation on which to implement our new strategy.'

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