Serco Group has completed the sale of its Australian long distance railway service Great Southern Rail to private equity firm Allegro for a total of £2.5 million.

Serco announced the sale of GSR back in November 2014 and came to an agreement with Allegro late in March 2015. The ownership of GSR does not coincide with Serco’s new strategy to focus on public sector services; it is thought that the railway’s historical lack of profitability also influenced the decision to sell.

Rupert Soames, CEO of Serco Group, commented: "Great Southern Rail is an iconic and award-winning Australian tourism business operated by some great people.

"However, Serco needs to concentrate on its core as a leading supplier of public services and we cannot provide the focus and investment GSR needs to thrive."

For weekly news updates, subscribe to our email newsletter.

Related: Serco Appoints Sir Roy Gardner as Chairman after Six-Month Search