The multi-national firm which runs Bradford's schools and Council computing services made pre-tax profits of more than £91 million last year.

Serco saw its profits rise by 28 per cent and revenues rise by 38.1 per cent to £2.26 billion in 2005.

The company owns Education Bradford, the private firm which was formed to take over the running of the district's education authority from Bradford Council in 2001.

Serco Solutions has also been awarded the ten-year £160 million Bradford contract to run the Council's computer services and the firm runs West Yorkshire Transport Service which provides transport for the disabled, elderly and young children.

Serco has hailed the success of its education contracts in both Bradford and Walsall.

It says: "In January 2005 Ofsted declared Bradford's services to be satisfactory, and Walsall to be highly satisfactory significant turnaround for what were once two of the poorest performing authorities in the country.

"While there is still a considerable amount of work to be done, both Walsall and Bradford have continued to improve at rates faster than the national trends in all indicators."

However an Audit Commission report into the financing of education in the district has revealed that Education Bradford has built up a deficit of £8.5 million since it took on the contract in 2001.

The report said the company was now looking to identify savings to help it recover its costs throughout the course of the ten-year contract.