Company Announcements

Serco wins £200m follow-on contract to provide marine services for the Royal Navy

16 November 2022

Serco has been awarded a contract by the UK Ministry of Defence (MOD) to continue to provide marine services for the Royal Navy.  Following the end of the 15-year private finance initiative (PFI) arrangements for the provision of marine services, the new agreement is with the Royal Navy directly.  The contract, which is valued at around £200m, will last for 27 months commencing in December 2022 and follows on directly from the current PFI, ensuring continuity of support.  The MOD has an option to extend the contract for up to six months.

Serco has been supporting the Royal Navy for over 25 years, assisting the movements of Royal Navy ships in and out of harbour and providing a range of further support services, including trialling new maritime technology, ferrying passengers, supporting military training exercises, and the provision and maintenance of buoys and moorings.  The team of 650 skilled mariners and engineers provides these services at six sites across the UK, including at His Majesty's Naval Bases (HMNB) at Devonport, Portsmouth, Clyde and the BUTEC Ranges in the Kyle of Lochalsh, as well as overseas.  Serco operates and maintains just under 100 tugs and other vessels, ranging in length from 11m to 93m and from 12 to 3,600 gross tonnes.

Commenting on the award, Rupert Soames, Serco Group Chief Executive, said: "Serco is delighted to be continuing to provide these vital services to support the Royal Navy.  We are proud of our service over the last 25 years and especially of our team, which combines decades of experience with highly specialised skills.  Many of the team are Navy veterans and have longstanding connections to the national maritime community.  We look forward to continuing this support for many years to come, drawing on Serco's increasing global maritime presence to innovate for our customers in the UK".

Ends

For further information please contact:

Paul Checketts, Head of Investor Relations, tel: +44 (0) 7718 195 074 or email: paul.checketts@serco.com

Marcus De Ville, Head of Media Relations, tel: +44 (0) 7738 898 550 or email: marcus.deville@serco.com

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.

LEI: 549300PT2CIHYN5GWJ21