Serco Group PLC AWE to transfer under direct management of MoD (8545D)

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RNS Number : 8545D

Serco Group PLC

02 November 2020

2 November 2020

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

Involvement of AWE Management Ltd in the Atomic Weapons Establishment to end in June 2021

Serco announces that it was informed by the Ministry of Defence on Friday night that AWE plc, the entity controlling the Atomic Weapons Establishment, will transfer back under the direct control and management of the Ministry of Defence as from 30th June 2021. Since 2000, AWE has been managed by AWE Management Limited, in which Serco holds a minority interest of 24.5%. The other shareholders are Lockheed Martin (51%) and Jacobs (24.5%). Serco is proud to have been involved with AWE for the last 20 years, and will work with the other shareholders and the Ministry of Defence to ensure a smooth transition to the new arrangements.

We expect that AWE will make a contribution to both Serco's Group Underlying Trading Profit and Profit After Tax of around GBP17m in 2020. Whilst our budgeting process is yet to be completed and the pandemic makes forecasting extremely difficult, assuming a smooth transition of AWE at the end of June 2021, we would expect both Group Underlying Trading Profit and Profit after Tax in 2021 to remain broadly in line with current consensus and at similar levels to our expectations for 2020, representing growth of around 35% over 2019.

This announcement contains inside information.

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

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November 02, 2020 02:00 ET (07:00 GMT)