(Alliance News) - Serco Group PLC on Wednesday said was awarded a contract by the UK Ministry of Defence to continue providing marine services to the Royal Navy.
The FTSE 250-listed outsourcer said the contract, which will last for 27 months starting in December, is valued at around GBP200 million. The Ministry of Defence has the option to extend the contract for up to six months.
Serco said the new agreement is with the Royal Navy directly. It follows on from Serco's current private finance initiative arrangement for the provision of marine services, which has been in place for 15 years.
A private finance initiative is a way of financing public sector projects through the private sector. The UK government has stopped creating new PFIs although existing contracts, such as Serco's, are allowed to expire.
Serco has been supporting the Royal Navy for over 25 years, assisting the movements of Royal Navy ships in and out of harbour and providing a range of further support services, including trialling new maritime technology, ferrying passengers, supporting military training exercises, and the provision and maintenance of buoys and moorings.
Chief Executive Ruper Soames said: "Serco is delighted to be continuing to provide these vital services to support the Royal Navy. We are proud of our service over the last 25 years and especially of our team, which combines decades of experience with highly specialised skills. Many of the team are Navy veterans and have longstanding connections to the national maritime community."
Shares in Serco were trading 0.4% higher at 166.70 pence each in London on Wednesday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com;
Copyright 2022 Alliance News Limited. All Rights Reserved.
Serco (SRP)