in Security

Serco signs 10-year £800m MoJ PECS contract

Posted 1 November 2019 · Add Comment

Serco Group plc has signed a contract with the UK Ministry of Justice (MoJ) to provide Prisoner Escort and Custody Services (PECS) for the South of England region.

Above: Prisoner Escort and Custody Services (PECS) van.
Courtesy Serco

The new contract will start on 29th August 2020 and has a total estimated value to Serco of approximately £800 million over the 10-year term.

Serco will be responsible for the safe and secure transportation of prisoners between prisons and courts, and for the safe and secure custody of prisoners while at court. We are investing in a new fleet of vehicles and an IT upgrade programme which we are confident will deliver further improvements to the strong performance and innovation we have already delivered over recent years.

The contract will incur mobilisation and transformation costs of around £4 million that will be charged to profit in 2020 in accordance with IFRS15.

The contracts tendered by the MoJ were for two regions of England and Wales, broadly North and South.  Serco has been selected to provide the service across the whole of the South of England region, which includes an area as far north as Gloucestershire, Northamptonshire, Cambridgeshire and Norfolk. This represents a significantly increased geographical area in comparison to our current contract, which is for just one of four regions (being London and the East of England). 

Serco’s current contract was awarded in March 2011 and was valued at approximately £285 million over its initial seven-year period; it was subsequently extended through to August 2020. Serco’s revenue on the current contract for the 2019 financial year is expected to be around £41m, and losses on the current contract, which in our Trading Profit are offset by the utilisation of the Onerous Contract Provision (OCP), are anticipated to be around £6m. The current operations handle approximately 24,000 prisoner movements a month, servicing 67 courts utilising eight vehicle bases.  The new contract will service 104 courts and utilise 16 vehicle bases.

Rupert Soames, Serco Group Chief Executive, said: “We are delighted to have been awarded this major contract to provide prisoner escort and custody services for the Ministry of Justice across the whole of the South of England region. Looking after prisoners as they are transported between secure locations and during their time in court is a sensitive and demanding role and their welfare and security is at the heart of our operations.  In recent years our performance has steadily and significantly improved, and today our team provides an outstanding service in what are often very challenging conditions.”


* required field

Post a comment

Other Stories
Latest News

Dstl forecasts future quantum landscape for UK defence and security

According to a research paper published by the Defence Science and Technology Laboratory (Dstl), on behalf of the Ministry of Defence (MoD) and in collaboration with UK Strategic Command 'Quantum Information Processing Landscape

Loganair and Blue Islands partner to connect UK regions and Channel Islands

Loganair and Blue Islands have formed an extensive partnership to offer a broad new range of regional air connections across the UK, the Channel Islands and the Isle of Man.

EUROCONTROL and EASA open joint office

The Director General of EUROCONTROL Eamonn Brennan and the European Union Aviation Safety Agency (EASA) Executive Director Patrick Ky, have together officially opened the joint EASA-EUROCONTROL Technical and Coordination Office

Alloyed wins prestigious IOP Award

Kidlington based Alloyed, the company formed from the merger of OxMet Technologies and Betatype late last year, has won the prestigious Institute of Physics (IOP) Business Start-up Award 2020.

Smart factory set to revolutionise UK's combat aircraft production

A new intelligent, smart factory is set to increase productivity and revolutionise combat aircraft production in the UK.

UK space sector to back 50 SP-INternships this summer

Despite the widespread disruption and uncertainty caused by the coronavirus pandemic, the UK space sector is recruiting 50 paid space internships this summer.

Getac SK0707210720
See us at
DVD 2020