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Serco signs ASP shared services NHS strategic partnership

Date: 16 Apr 2012

Serco Group plc (Serco), the international service company, announces today that it has signed the agreement to operate, and has begun to operate, the Anglia Support Partnership (ASP). ASP becomes Serco's first shared services proposition in the emerging market for middle and back office support to the UK health sector. The annual revenue to Serco of the current contracts is approximately £30m, equivalent to an initial total contract value of £120m over an average of four years.

Cambridgeshire and Peterborough NHS Foundation Trust (CPFT), together with a further five partnering NHS organisations, has operated ASP to date. There are around 65 contracts for the provision of support services to the Trust and partners, as well as to around 50 other public and private organisations. The support services provided currently include: operational and specialist IT; finance operations; employment services; contracts management; procurement; primary care support services; occupational health; risk management; catering; and estates and property.

A new four-year framework agreement permits the call-off of additional services including: commissioning advice and related support services; cost reduction, efficiency advice and consultancy services; and patient administration. The framework enables, amongst others, all NHS organisations in the new Midlands and East Strategic Health Authority to access services equivalent to around 25% of total NHS spend. ASP currently employs around 620 members of staff who will transfer as a consequence. As part of establishing the strategic partnership, Serco's payment to the partners, which includes acquiring the assets of ASP, totals approximately £9m in 2012.

Dr Attila Vegh, Chief Executive of CPFT, said: "We consider Serco to be the ideal strategic partner and one that can offer the investment that's vital to keep ASP's services at the cutting edge. Capitalising on the strengths and track record of ASP, we are looking forward to seeing Serco modernise systems and invest in infrastructure, while seizing other opportunities for growing the business. This allows CPFT to concentrate on delivering high-quality health and social care that promotes well-being and independence and which we are proud to recommend to our families and communities."

Christopher Hyman, Chief Executive of Serco Group, said: "We are delighted to be chosen to operate the Anglia Support Partnership. This adds a further strategic partnership to our growing health support services and BPO operations. Under the ASP framework, Serco will now be able to address much of the sizeable NHS 'shared services' market, offering member organisations both improvements in service quality and substantial cost savings. We are combining our breadth of skills and ability to transform public services to build a leading health platform, and this represents a significant milestone and early success for our newly created Global Services division."

Ends

For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 208 334 4122
Marcus De Ville, Head of Media Relations T +44 (0) 208 334 4334

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Last Updated: 16 Apr 2012