Serco Group PLC Serco signs £800m ten-year PECS contract (6198R)
30 Ottobre 2019 - 11:03AM
UK Regulatory
TIDMSRP
RNS Number : 6198R
Serco Group PLC
30 October 2019
Serco signs GBP800m ten-year Prisoner Escort and Custody
Services contract
30 October 2019
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international
service company, has signed a contract with the UK Ministry of
Justice (MoJ) to provide Prisoner Escort and Custody Services
(PECS) for the South of England region. The new contract will start
on 29 August 2020 and has a total estimated value to Serco of
approximately GBP800m over the ten-year term.
Serco will be responsible for the safe and secure transportation
of prisoners between prisons and courts, and for the safe and
secure custody of prisoners while at court. We are investing in a
new fleet of vehicles and an IT upgrade programme which we are
confident will deliver further improvements to the strong
performance and innovation we have already delivered over recent
years.
The contract will incur mobilisation and transformation costs of
around GBP4m that will be charged to profit in 2020 in accordance
with IFRS15.
The contracts tendered by the MoJ were for two regions of
England and Wales, broadly North and South. Serco has been selected
to provide the service across the whole of the South of England
region, which includes an area as far north as Gloucestershire,
Northamptonshire, Cambridgeshire and Norfolk. This represents a
significantly increased geographical area in comparison to our
current contract, which is for just one of four regions (being
London and the East of England). Serco's current contract was
awarded in March 2011 and was valued at approximately GBP285m over
its initial seven-year period; it was subsequently extended through
to August 2020. Serco's revenue on the current contract for the
2019 financial year is expected to be around GBP41m, and losses on
the current contract, which in our Trading Profit are offset by the
utilisation of the Onerous Contract Provision (OCP), are
anticipated to be around GBP6m. The current operations handle
approximately 24,000 prisoner movements a month, servicing 67
courts utilising 8 vehicle bases. The new contract will service 104
courts and utilise 16 vehicle bases.
Rupert Soames, Serco Group Chief Executive, said: "We are
delighted to have been awarded this major contract to provide
prisoner escort and custody services for the Ministry of Justice
across the whole of the South of England region. Looking after
prisoners as they are transported between secure locations and
during their time in court is a sensitive and demanding role and
their welfare and security is at the heart of our operations. In
recent years our performance has steadily and significantly
improved, and today our team provides an outstanding service in
what are often very challenging conditions."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 7738 894
788
Marcus De Ville, Head of Media Relations T +44 (0) 7738 898
550
About Serco
Serco is a leading provider of public services. Our customers
are governments or others operating in the public sector. We gain
scale, expertise and diversification by operating internationally
across five sectors and four geographies: Defence, Justice &
Immigration, Transport, Health and Citizen Services, delivered in
UK & Europe, North America, Asia Pacific and the Middle
East.
More information can be found at www.serco.com
Forward-looking statements
This announcement contains statements which are, or may be
deemed to be, "forward-looking statements" which are prospective in
nature. All statements other than statements of historical fact are
forward-looking statements. Generally, words such as "expect",
"anticipate", "may", "could", "should", "will", "aspire", "aim",
"plan", "target", "goal", "ambition", "intend" and similar
expressions identify forward-looking statements. By their nature,
these forward-looking statements are subject to a number of known
and unknown risks, uncertainties and contingencies, and actual
results and events could differ materially from those currently
being anticipated as reflected in such statements. Factors which
may cause future outcomes to differ from those foreseen or implied
in forward-looking statements include, but are not limited to:
general economic conditions and business conditions in Serco's
markets; contracts awarded to Serco; customers' acceptance of
Serco's products and services; operational problems; the actions of
competitors, trading partners, creditors, rating agencies and
others; the success or otherwise of partnering; changes in laws and
governmental regulations; regulatory or legal actions, including
the types of enforcement action pursued and the nature of remedies
sought or imposed; the receipt of relevant third party and/or
regulatory approvals; exchange rate fluctuations; the development
and use of new technology; changes in public expectations and other
changes to business conditions; wars and acts of terrorism; and
cyber-attacks. Many of these factors are beyond Serco's control or
influence. These forward-looking statements speak only as of the
date of this announcement and have not been audited or otherwise
independently verified. Past performance should not be taken as an
indication or guarantee of future results and no representation or
warranty, express or implied, is made regarding future performance.
Except as required by any applicable law or regulation, Serco
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking statements
contained in this announcement to reflect any change in Serco's
expectations or any change in events, conditions or circumstances
on which any such statement is based after the date of this
announcement, or to keep current any other information contained in
this announcement. Accordingly, undue reliance should not be placed
on the forward-looking statements.
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END
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