Serco Group PLC Serco SEA - signs contract extensions worth £135m (0794K)

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RNS Number : 0794K

Serco Group PLC

11 December 2018

Serco signs GBP135m of contract extensions to continue providing frontline and back office services to two UK Local Authorities

11 December 2018

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

Serco Group plc ('Serco' or 'the Group'), the international service company, has signed contract extensions with both Peterborough City Council and Lincolnshire County Council to continue providing a range of frontline and back office services to these councils. The contract extensions have a combined total value to Serco of approximately GBP135m.

Serco has supported Peterborough City Council as part of a ten-year partnership which started in November 2011, providing services including Customer Services, Business Support Services, Shared Transactional Services (including Revenues and Benefits), Transactional HR and Payroll, Procurement and Business Transformation. The ten-year contract extension has a total value to Serco of approximately GBP105m and will see Serco continue to provide these services until 2031.

Under the existing agreement Serco has delivered GBP10m of savings to the Council, consistently achieved all our key performance indicators and delivered improvements including faster processing of housing benefit claims and improved collection of council tax and business rates. The Serco customer services team has also received a Customer Service Excellence accreditation - a national Government Standard.

Serco has also signed a two-year contract extension with Lincolnshire County Council with a total contract value of GBP30m. This contract extension will see Serco continue to provide services including Customer Services, Financial Services, IT Services and Transactional HR and Payroll. Serco has been delivering these services since 2015 and this contract extension will see these continue until at least 2022.

Commenting on the contract extensions, Rupert Soames, Serco Group Chief Executive, said: "We are delighted to have agreed these contract extensions to continue providing support to Peterborough City Council and Lincolnshire County Council until 2031 and 2022 respectively. We have worked extremely hard to deliver improvements in these services and to meet our key performance indicators and look forward to continuing to deliver these important services for the benefit of the Councils and residents."

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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 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", "should", "will", "aspire", "aim", "plan", "target", "goal", "ambition" 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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December 11, 2018 02:01 ET (07:01 GMT)