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Extension of contract to operate Acacia Prison in Western Australia

Date: 24 Feb 2016

Serco Group plc (Serco), the international service company, has extended its contract with the Western Australian Government to operate Acacia Prison for a further five years, to May 2021. The total value of the contract extension, signed today, is expected to be £166m (A$324m) over the five year period.

Serco has run Acacia prison since 2006 and this extension has been exercised by the Western Australian Government under the original contract. Acacia is Australia’s largest prison, housing 1,395 prisoners. Today’s agreement has an option to increase prisoner numbers by a further 100.

The Western Australian Economic Regulation Authority recently found Acacia Prison, the only private-sector adult prison in Western Australia, to be the most efficient prison in the state with the cost per prisoner per day, 44% less than the average. With its focus on security, safety and rehabilitation of prisoners, the prison has had a strong operating track record and has already recently been expanded with the addition of new capacity.

Rupert Soames, Serco Group Chief Executive Officer, said: “I am delighted that the Western Australian Government has chosen to extend their contract with Serco for the operation of Acacia prison. This announcement is not only an endorsement of the work our team at Acacia do, but also of Serco’s ability as a prison operator, focusing on the rehabilitation of prisoners and efficient management of prisons, in Australia and elsewhere.”

Ends

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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: 24 Feb 2016