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Top UK Stocks to Watch: Capita shares rise as it unveils restructuring plan
Joshua Warner March 17, 2021 8:51 AM
Capita hopes to return to growth by streamlining its business, Carnival prepares to restart UK cruises in June, SSP Group launches a rights issue, Serco wins a major new contract in Canada, and BT Group and Vodafone secure more 5G spectrum in Ofcom’s latest auction. Share:
Top News: Capita eyes £700 million of disposals as part of restructuring plan
Capita said it is restructuring its business and selling-off a number of non-core businesses to help get the company back on track after a tough 2020 plagued by the coronavirus pandemic, with hopes of returning to growth this year.
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HOOK (dpa-AFX) - Outsourcing services company Serco Group Plc (SRP.L) said on Wednesday that it has secured a rebid to offer support services at the 5 Wing Canadian Forces Base in Goose Bay, Canada.
The early 10-year period of the contract has an estimated ceiling value of C$694 million or approximately 400 million pounds.
The contract, which can be extended twice for 5 years each, has a potential ceiling value, including indexation, of around C$1.5 billion or 870 million pounds over its complete term.
The company expects annual revenues of 20 million pounds to 30 million pounds in the initial years of the contract, as seen in the existing agreement as well. Secured after an open tender process, the contract will start from September this year.
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.”