Contract rebid win at Acacia Prison

RNS Number : 9276I

Serco Group PLC

17 December 2020

 

Serco wins rebid at Acacia prison in Western Australia worth up to £790m

17 December 2020

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

S erco Group plc ('Serco' or 'the Group'), the international service company, through its Australian subsidiary, today announces that it has signed a contract to deliver prison services at Acacia Prison for the Government of Western Australia for up to 15 years.  The initial 5-year period has an estimated value of A$445m or approximately £250m.  The contract has provision for two further 5-year extensions with potential value to Serco over the full 15 years, including indexation, of approximately A$1.4bn (£790m).

The new contract will commence in May 2021, and transition will start immediately.  Serco has managed operations at the prison, which is Western Australia's largest prison and the second largest in Australia, since 2006.  The largest prison in Australia, Clarence Correctional Centre in New South Wales, is also managed by Serco.  This new contract was awarded after an open tender process and for the first time also includes Facilities Maintenance.

Rupert Soames, Serco Group Chief Executive, said: "Acacia prison has been operated successfully by Serco for 15 years and we are delighted that the Government of Western Australia has selected us to continue to support them. I am very proud of the work we have done there, including overseeing several expansions. Our drive for operational excellence, focusing on rehabilitation and reintegration, is central to our work at Acacia, and the new contract will allow us to introduce technology to enhance safety, as well as programs and partnerships, to help the State achieve its policy of reduced reoffending whilst keeping the community safe."

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For further information please contact:

Paul Checketts, Head of Investor Relations, tel: [phone] or email: [e-mail]

Marcus De Ville, Head of Media Relations, tel: [phone] or email: [e-mail]

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; cyber-attacks; and pandemics, epidemics or natural disasters.  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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