Serco wins rebid at Goose Bay worth up to £870m

RNS Number : 4872S

Serco Group PLC

17 March 2021

 

Serco wins rebid at Goose Bay in Canada worth up to £870m

17 March 2021

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

Serco has been awarded a contract to provide support services at the 5 Wing Canadian Forces Base in Goose Bay, Canada. The initial 10-year period has an estimated ceiling value of C$694 million or approximately £400m.  We anticipate annual revenue of £20m-£30m in the opening years, which is similar to the level seen in recent years on the existing agreement. The contract has provision for two further 5-year extensions with a potential ceiling value to Serco over the full 20 years, including indexation, of approximately C$1.5bn (~£870m).  The contract was awarded after an open tender process and will commence in September 2021.

Under the contract, Serco will continue to perform the majority of the non-military operation and maintenance functions at this base, located in Central Labrador.  The services include: aviation services, including air traffic control and maintenance of navigational aids; fire and rescue services; logistics services, including, warehouse operations, snow and ice removal, environmental protection, hazardous waste management and inventory management; and facilities management services, including engineering, telecommunications/IT, electrical and airfield distribution systems, water treatment, central heating plant operations, grounds maintenance, security, food services and janitorial services.

Serco has been providing services to the Canadian Department of National Defense at 5 Wing Goose Bay since 1998 and is one of the largest private sector employers in the area.  The base consists of 115 buildings across 200,000 square meters, extensive civil infrastructure, and two runways along with a large-scale training complex.  Serco supports a wide variety of community activities in the area and has a specific focus on indigenous skill development and training.

Rupert Soames, Serco Group Chief Executive, said: "Goose Bay has been operated successfully by Serco for more than 20 years and we are delighted to have been selected to continue to support the Canadian Department of National Defence on what is a vital piece of national infrastructure.  I am very proud of the work we have done there, including both the service delivery to the Canadian Armed Forces and Serco's work with the local community.  The new contract will allow us to build on both of these areas."

Ends

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.

 

END

 

 

CNTDKABBBBKBQND