Serco JV Agrees AWE Pricing With UK MoD, Sees GBP300 Million Revenue/Year
May 11 2012 - 2:49AM
Dow Jones News
Serco Group PLC (SRP.LN), an international service company, said
Friday it has agreed arrangements for the next pricing period
regarding the Atomic Weapons Establishment, or AWE, contract,
adding that its share of revenue is expected to remain around
GBP300 million a year with GBP1.5 billion added to its order
book.
MAIN FACTS:
-Agreement has been reached with the U.K. Ministry of Defense,
or MoD, by Serco and its joint venture partners Lockheed Martin
Corp (LMT) and Jacobs Engineering Group Inc (JEC) with whom it
manages and operates AWE on behalf of the MoD.
-This is the fourth such pricing period to date since the
contract started on April 1, 2000.
-New arrangements will take effect from April 1, 2013 and run
through to March 31, 2018.
-Earnings and margin rate in the initial years will be similar
to those achieved in the initial years of the current pricing
period.
-Serco shares closed Thursday at 549.5 pence valuing the company
at GBP2.74 billion.
-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296;
ian.walker@dowjones.com
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