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Serco signs five-year contract to continue providing Australian immigration services

Date: 10 Dec 2014

Having been selected as Preferred Tenderer in September, Serco Group plc (Serco), the international service company, is delighted to announce that it has now signed a new five-year contract with the Department of Immigration and Border Protection (DIBP) to continue providing onshore immigration detention services in Australia. The contract, which commences immediately, has a value dependent on the number of people in our care. The Australian Government has valued the contract tender, in total over the initial five-year period and including GST, at A$1.9bn (approximately £1.0bn), subject to the volume of work performed. Reflecting the most recent number of people in our care, the estimated contract value to Serco is currently lower than the potential tender value, and Serco will initially reflect in its order book that £100-150m of revenue is anticipated in relation to the first year of the contract. In addition to the initial five-year period, there are two extension options of up to two years each.

Under the terms of the contract, Serco will provide services to the onshore immigration detention network in seven Australian States and Territories, including Christmas Island. These include accommodation, transport and escort, access control, induction, welfare, education, programs and activities, catering, incident management, and property and facilities management. Serco has been providing immigration services to the Department since October 2009 and currently employs more than 2,000 people to deliver the contract. In mid-2013 the number of people in our care reached 10,000. The actions taken by the Australian Government to prevent people without a valid visa from coming to Australia by boat, together with other changes in government policy, has significantly reduced the population in onshore detention to a level which currently stands at around 3,000.

Rupert Soames, Group Chief Executive Officer, said: "The successful rebid of this contract is a credit to the hard work of our colleagues over the last five years. Looking after the people in our care is a great responsibility, and our immigration services team does so with dignity, humanity and respect. Along with our customer, we are committed to operating safe, secure environments and to making a positive contribution to the communities we work in."

For further information please contact Serco:

Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227

Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226

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Last Updated: 10 Dec 2014