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Serco JV Agrees AWE Pricing With UK MoD, Sees GBP300 Million Revenue/Year

LONDON -(Dow Jones)- 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

Stock News for Lockheed Martin (LMT)
DateTimeHeadline
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