9th Mar 2020 09:24
(Alliance News) - Serco Group PLC on Monday said it has signed a six-year contract extension with the government of Western Australia to continue delivering support services at Fiona Stanley Hospital in Perth.
The defence, transport, justice, immigration, healthcare and citizen services provider said the contract extension has an estimated value to the company over its six-year term of AUD730 million, equivalent to about GBP370 million.
The six-year extension will commence in August 2021, Serco said, upon the completion of the first 10-year term of the contract.
In securing the extension, Serco and the government of Western Australia have agreed that three service lines currently delivered by Serco - cleaning, catering and internal logistics - will be delivered by the state from August 2021, with the financial scale of Serco's contract reducing from that point to reflect this.
Preparation for the transition of these services will commence immediately, in readiness for the start of the contract extension period, the company said.
"Fiona Stanley Hospital is an outstanding facility delivering a world-class service. I am very proud of the work we have done to initially stand up a greenfield site into the state's leading public health facility and then to support clinical services over the hospital's first seven years," said Serco Chief Executive Rupert Soames.
"We are pleased the State has recognised the importance of Serco's ongoing support with this contract extension for the next stage the hospital's development, and we will continue to work incredibly hard to deliver our services and ensure the transition is efficiently delivered," added Soames.
FTSE 250-listed Serco shares were trading 3.5% lower in London on Monday at 140.70 pence each.
By Evelina Grecenko; [email protected]
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