AWEML is a joint venture company owned equally by Serco, Lockheed Martin Corporation (“Lockheed Martin”) and British Nuclear Fuels plc (“BNFL”). The total value of the contract extension is expected to be approximately £3.1 billion; the value of the original ten-year contract was approximately £2.2 billion. This award will increase Serco’s already significant forward order book to approximately £7 billion.

AWE is the UK Government's nuclear weapons research and development centre, and has responsibility for the nation's nuclear weapons stockpile. The management and operation contract, which commenced on 1 April 2000, is for the stewardship of the country’s nuclear deterrent, the continuing development of science and research programmes, waste and environmental management, provision of all services related to facilities management, and associated site support.

Negotiations have also been completed with the Ministry of Defence (“MoD”) to enable, subject to the approval of the MoD, AWEML to have access to private capital from financial institutions, should it be required, for a series of major capital works planned for AWE. This will allow the timing and benefits of important projects to be optimised. Benefits are expected to flow from environmental and operational improvements and increased efficiency. Facilities such as a new Conference Centre will facilitate contact between outside academic and business partners and with the local community. The capital programme will ensure that AWE continues to develop as a world class facility providing a safety critical environment for the delivery of science management and development.

Kevin Beeston, Executive Chairman of Serco Group plc, commented:

"We are delighted with today’s announcement which I believe represents the confidence that the Ministry of Defence has in the custodianship of AWE. The extension to a 25-year contract demonstrates the strong relationship between the MoD, AWEML and AWE plc, the hard work of all the staff involved at AWE and the quality of the management team. It also represents a value for money, long-term relationship with the UK government. Serco is committed to delivering first class scientific expertise in the UK and abroad. With our consortium partners Lockheed Martin and BNFL, we will ensure that AWE continues to deliver the requirements of the UK MoD whilst maintaining the high standards of safety and quality expected of it.”