Serco sign Australian immigration contract

RNS Number : 3398Z

Serco Group PLC

10 December 2014

 

Serco signs five-year contract to continue providing Australian immigration services

10 December 2014

Having been selected as Preferred Tenderer in September, Serco Group plc (Serco), the international service company, is delighted to announce that it has now signed a new five-year contract with the Department of Immigration and Border Protection (DIBP) to continue providing onshore immigration detention services in Australia.  The contract, which commences immediately, has a value dependent on the number of people in our care.  The Australian Government has valued the contract tender, in total over the initial five-year period and including GST, at A$1.9bn (approximately £1.0bn), subject to the volume of work performed.  Reflecting the most recent number of people in our care, the estimated contract value to Serco is currently lower than the potential tender value, and Serco will initially reflect in its order book that £100-150m of revenue is anticipated in relation to the first year of the contract.  In addition to the initial five-year period, there are two extension options of up to two years each.

Under the terms of the contract, Serco will provide services to the onshore immigration detention network in seven Australian States and Territories, including Christmas Island.  These include accommodation, transport and escort, access control, induction, welfare, education, programs and activities, catering, incident management, and property and facilities management.  Serco has been providing immigration services to the Department since October 2009 and currently employs more than 2,000 people to deliver the contract.  In mid-2013 the number of people in our care reached 10,000.  The actions taken by the Australian Government to prevent people without a valid visa from coming to Australia by boat, together with other changes in government policy, has significantly reduced the population in onshore detention to a level which currently stands at around 3,000.

Rupert Soames, Group Chief Executive Officer, said: "The successful rebid of this contract is a credit to the hard work of our colleagues over the last five years.  Looking after the people in our care is a great responsibility, and our immigration services team does so with dignity, humanity and respect.  Along with our customer, we are committed to operating safe, secure environments and to making a positive contribution to the communities we work in."

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For further information please contact Serco:

Stuart Ford, Head of Investor Relations T [phone]

Marcus De Ville, Head of Media Relations T [phone]

About Serco

Serco is an international service company, which combines commercial know-how with a deep public service ethos.

Around the world, we improve essential services by managing people, processes, technology and assets more effectively.  We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public.

Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence.  Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors.

More information can be found at www.serco.com

Forward looking statements

This announcement contains forward looking statements.  The terms "expect", "anticipate", "may", "should", "will" and similar expressions identify forward looking statements.  By their nature, these forward looking statements are subject to a number of risks and uncertainties 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 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; 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.  These forward looking statements speak only as of the date of this announcement.  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.

 

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