Serco wins contract extension at Australia's largest prison

Australia's largest prison was to be operated by Serco for another five years, it was revealed on Wednesday, as the firm signed an extension to its contract with the Government of Western Australia.

The FTSE 250 service company said the total value of the contract extension was expected to be AUD324m (£166m) over the five year period.

Serco had run Acacia since 2006, and the extension was exercised by the WA government under the original contract. Acacia had the capacity to house 1,395 prisoners, and under the agreement there was an option to increase numbers by a further 100.

"I am delighted that the WA government has chosen to extend their contract with Serco for the operation of Acacia prison," said group CEO Rupert Soames.

"This announcement is not only an endorsement of the work our team at Acacia do, but also of Serco's ability as a prison operator, focusing on the rehabilitation of prisoners and efficient management of prisons, in Australia and elsewhere," he added.

Acacia Prison was currently the most cost efficient prison in Western Australia, with the cost per prisoner per day 44% less than the average.