HOOK (dpa-AFX) - Shares of Serco Group plc (SRP.L) were gaining around 3 percent in the morning trading in London after the provider of public services announced that it was awarded a contract worth 450 million pounds for Northern Isles Ferry Services.
The company has been selected as the preferred bidder to continue managing and operating the lifeline Northern Isles Ferry Services for passengers and freight between the Scottish mainland and the Orkney Islands and Shetland Islands. Serco first began managing the service in 2012.
There is currently a mandatory standstill period following the appointment decision.
The contract is anticipated to start in the fourth quarter. It has a total estimated revenue value to Serco of approximately 450 million pounds over the initial six-year term. There is an option for Scottish Ministers to extend the contract for a further two years, valued at a further 160 million pounds.
In London, Serco shares were trading at 152.20 pence, up 2.56 percent.
Copyright RTT News/dpa-AFX