Serco Group PLC Serco signs new AU$115m contract to operate ARC (1361T)

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RNS Number : 1361T

Serco Group PLC

18 March 2019

Serco signs new AU$115m contract with South Australian Government to operate Adelaide Remand Centre

18 March 2019

Serco Group plc

LEI: 549300PT2CIHYN5GWJ21

Serco Group plc ('Serco' or 'the Group'), the international service company, through its Australian subsidiary, has signed a new contract with the South Australian Government to operate and manage the Adelaide Remand Centre (ARC) for the South Australia Department for Correctional Services. The estimated total contract value to Serco over an initial seven-year term is AU$115m; the term can be extended by up to five years. Serco will begin transition of the facility immediately and full operational service will start in August 2019.

ARC currently accommodates up to 274 remand prisoners. The facility will be upgraded as part of the contract with an increase in total possible occupancy. The centre's proximity to metropolitan courts allows ease of transfer for prisoner court appearances and the centre also has a video conferencing facility that allows prisoners to be directly linked electronically to the court.

Under the contract, Serco will also develop and implement a purpose-designed remand strategy with a focus on safety and security, together with managing and preparing prisoners for release or relocation. The strategy supports South Australia's target to reduce reoffending by 10 per cent in the State. Serco will be working with a range of partner organisations to support the delivery of the strategy. This includes services such as relapse prevention, court advocacy, treatment services and holistic family support.

Commenting on the contract award, Rupert Soames, Serco Group Chief Executive, said: "We are very pleased to have been chosen by the South Australian Government to manage Adelaide Remand Centre and deliver these very important services. The contract expands what is traditionally undertaken in remand and focusses on providing a broad range of reintegration support services to all prisoners from the very start of the process. In developing our solution, we have drawn on our extensive experience operating correctional facilities within the Australian criminal justice system, as well as in New Zealand and the United Kingdom, and will deliver straightforward interventions that deliver long lasting and positive effects."

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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]

Serco Australia

Tim Evans, Director of Corporate Affairs ASPAC 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", "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; 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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March 18, 2019 03:01 ET (07:01 GMT)