Serco nets new £870m support services contract in Canada
Outsourcer Serco has this morning won a £870m contract to provide support services at a military base in Canada.
The FTSE 250 firm has been providing non-military maintenance services at the Goose Bay in Newfoundland and Labrador province since 1998.
For its initial 10 years, the deal is worth a maximum £400m, with the firm expected to bring in £20m-£30m annually.
It is subject to two five-year extensions which could then take revenue up to nearly £900m.
Chief executive Rupert Soames said: “Goose Bay has been operated successfully by Serco for more than 20 years and we are delighted to have been selected to continue to support the Canadian Department of National Defence on what is a vital piece of national infrastructure.
“I am very proud of the work we have done there, including both the service delivery to the Canadian Armed Forces and Serco’s work with the local community. The new contract will allow us to build on both of these areas.”
The deal runs from September 2021. Under it, the firm will provide a full range of aviation, facilities management, logistics, and fire and rescue services.