Wincanton (LSE:WIN)
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Serco Group PLC (SRP.LN) an international service company said Wednesday that, it has signed a contract with the U.K. Government's Ministry of Justice to provide Prisoner Escort and Custody Services within the new National Offender Management Service region of London and the East of England.

MAIN FACTS:

-The contract, which is expected to commence at the end of August, has a value to Serco of around GBP42 million per annum for seven years, with options to extend by three years on a year-by-year basis.

-With all options exercised, the contract would have a value of GBP420 million to Serco over 10 years.

-This new contract replaces Serco's current contract to provide prisoner escorting services to the current National Offender Management Service regions of London and the South East under a seven year contract.

-Under the new contract, Serco will work in partnership with Wincanton PLC (WIN.LN) to provide the safe, timely and secure transportation of prisoners between Police stations, Courts and HM Prisons.

-Whilst at court, Serco staff will manage custody suites and accompany prisoners in courtroom docks.

-Serco shares at 1020 GMT down 4 pence, or 0.7%, at 567 pence, valuing the company at GBP2.8 billion.

-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com