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Serco signs AU$730m (£370m) contract extension to provide support services at Fiona Stanley Hospital

Published: 9 Mar 2020

Serco Group plc ('Serco' or 'the Group'), the international service company, through its Australian subsidiary, today announces that 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, Western Australia. The contract extension has an estimated value to Serco over its six-year term, including indexation, of approximately AU$730m; at an exchange rate of AU$1.96, this is equivalent to approximately £370m.

The six-year extension will commence in August 2021, at the completion of the first 10-year term of the contract. The first term incorporated the transition and commissioning of the 783-bed public hospital and the first seven years of operation. The original contract also allows for a further extension of up to four years.

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 (primarily portering services) – 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.  Serco will continue to deliver 21 service lines, including facilities and asset management, electronic records management and ICT management across the hospital estate.

Rupert Soames, Serco Group Chief Executive, 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. We are pleased the State has recognised the importance of Serco’s ongoing support with this contract extension for the next stage of the hospital’s development, and we will continue to work incredibly hard to deliver our services and ensure the transition is efficiently delivered.”