Serco UK rail operations
18 June 2014
Serco Group plc (Serco), the international service company, today provides an update on its UK rail operations.
Over the last twenty years Serco has built substantial interests and expertise in rail operations both in the UK and internationally. In the UK we are the operators of the Docklands Light Railway, and we also run both Merseyrail and Northern Rail with our joint venture partner Abellio. In addition, we have recently been selected by Transport Scotland to manage the new 15-year franchise for the Caledonian Sleeper service. Overseas, we operate the Dubai Metro and Great Southern Rail in Australia.
In March 2014, a 22-month interim franchise agreement was signed by Serco and Abellio to continue operating the Northern Rail service on behalf of the UK Department for Transport until February 2016. The tender process for the next Northern Rail franchise period, which will run from February 2016, has recently started, and, given the individual strengths of each company's rail credentials, Serco and Abellio have agreed that they will pursue separate paths in respect of the new Northern Rail franchise. The Merseyrail joint venture, which runs until 2028, is unaffected by this decision.
Having recently been selected to operate the Caledonian Sleeper service, Serco continues to develop its UK rail business and is currently evaluating options for a number of franchises, including Northern Rail itself and TransPennine Express, the tender process for which is running on a similar timetable to Northern Rail. At the same time Serco is also in the process of rebidding its Docklands Light Railway contract, as well as pursuing several other rail and transportation opportunities around the world.
Rupert Soames, Serco Group Chief Executive Officer, said: "Serco has established a strong track record of providing high quality and efficient rail services around the world. We evaluate each opportunity on individual merit, and focus on those where we can have a transformational impact. This approach will benefit both our customers and the company alike."
Ends
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
About Serco
Serco is an international service company, which combines commercial know-how with a deep public service ethos.
Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public.
Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors.
More information can be found at www.serco.com
Forward looking statements
This announcement contains forward looking statements. The terms "expect", "anticipate", "may", "should", "will" and similar expressions identify forward looking statements. By their nature, these forward looking statements are subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors which may cause future outcomes to differ from those foreseen in forward looking statements include, but are not limited to: general economic conditions and business conditions in Serco's markets; contracts awarded to Serco; customers' acceptance of Serco's products and services; operational problems; the actions of competitors, trading partners, creditors, rating agencies and others; the success or otherwise of partnering; changes in laws and governmental regulations; regulatory or legal actions, including the types of enforcement action pursued and the nature of remedies sought or imposed; exchange rate fluctuations; the development and use of new technology; changes in public expectations and other changes to business conditions; wars and acts of terrorism; and cyber-attacks. These forward looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, Serco expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in Serco's expectations or any change in events, conditions or circumstances on which any such statement is based.
