Gatwick Immigration Removal Centres £200m contract
Serco signs new contract to manage Gatwick Immigration Removal Centres valued at £200m
20 February 2020
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international service company, has signed a new contract with the UK Home Office Immigration Enforcement department to manage the Gatwick Immigration Removal Centres (IRC). The contact is expected to start on 21 May 2020 and has an estimated total contract value to Serco over an initial eight-year term of approximately £200m.
Under the new Gatwick IRC contract, Serco will manage and operate both the Brook House and Tinsley House IRCs, as well as providing Pre-Departure Accommodation (PDA) services which are currently operated under a separate contract and delivered from a dedicated unit within Tinsley House. Serco will be responsible for all aspects of detainee safety, security and welfare provision (excluding healthcare services which will continue to be operated under a separate contract commissioned by NHS England), together with facilities management and catering.
Serco will be recruiting around 170 additional employees, increasing overall staffing levels to approximately 580. This increase is intended to ensure stability and decency in the support and care for residents, and was mandated by the UK Home Office as part of the bid process. Current employees will transfer to Serco under TUPE. All existing and new staff will receive thorough training and management support to ensure that there is a positive culture and that high standards of professional conduct are maintained. A new programme of residents' activities will also be introduced, including an extended core day and purposeful activities to improve the centre environment for all detainees and staff, in line with Home Office requirements.
Commenting on the contract award, Rupert Soames, Serco Group Chief Executive, said: "We are very pleased to have been awarded this new contract to manage the Gatwick Immigration Removal Centres. Serco has a great deal of experience of caring for people in the immigration system both in the UK and internationally, and we understand the sensitivity and complexity of this role. We know that staff and managers at Gatwick IRC have worked hard to achieve improvements in recent years and we look forward to working with them to build upon this further. The Home Office has made significant investment in the design and resourcing of the new contract, and we are committed to ensuring that there is a healthy, decent environment in the centres for all residents and employees."
Ends
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
Forward looking statements
This announcement contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. All statements other than statements of historical fact are forward-looking statements. Generally, words such as "expect", "anticipate", "may", "could", "should", "will", "aspire", "aim", "plan", "target", "goal", "ambition", "intend" and similar expressions identify forward looking-statements. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, 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 or implied 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; the receipt of relevant third party and/or regulatory approvals; 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. Many of these factors are beyond Serco's control or influence. These forward-looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. 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 after the date of this announcement, or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on the forward-looking statements.
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