Serco Share News (SRP)

(Sharecast News) - Serco said on Thursday that it has been awarded a contract by the Ministry of Defence to deliver its next-generation recruitment solution for the Royal Navy, the British Army, the Royal Air Force and Strategic Command.

The contract is valued at around £1bn over the initial seven-year term and up to £1.5bn should the Ministry of Defence elect to exercise all three one-year extension options beyond the initial term.

Serco said a 21-month mobilisation period is expected to begin in April, with most of the costs charged to profit as they are incurred. The new service is scheduled to start in early 2027.

Serco will be the prime contractor and, in conjunction with a team of delivery partners, will provide an end-to-end service from candidate attraction through to assessment, enlistment and onboarding into initial training.

Chief executive Mark Irwin, said: "It is a true privilege to be selected to partner with the UK Ministry of Defence in service of the nation's current and future Armed Forces. Serco has been working with the MOD for over 60 years, and we fully recognise the critical importance of recruiting and retaining the right number of well-trained personnel willing to serve and defend their country.

"Along with our partners, we have invested in the development of this solution since the procurement for AFRS was launched in 2021 and we are fully committed to ongoing collaboration with the MOD to ensure we adapt to current and emerging needs."