Serco signs AU$730m (£370m) contract extension to provide support services at Fiona Stanley Hospital
9 March 2020
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
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 the hospital's development, and we will continue to work incredibly hard to deliver our services and ensure the transition is efficiently delivered."
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For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 7738 894 788
Marcus De Ville, Head of Media Relations T +44 (0) 7738 898 550
About Serco
Serco is a leading provider of public services. Our customers are governments or others operating in the public sector. We gain scale, expertise and diversification by operating internationally across five sectors and four geographies: Defence, Justice & Immigration, Transport, Health and Citizen Services, delivered in UK & Europe, North America, Asia Pacific and the Middle East.
More information can be found at www.serco.com
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