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Serco appoints new managing director for defence, loses detention contract rebid

Serco, a subsidiary of the United Kingdom’s Serco Group, has appointed Peter Behrendt as Asia-Pacific managing director for defence.

Serco, a subsidiary of the United Kingdom’s Serco Group, has appointed Peter Behrendt as Asia-Pacific managing director for defence.

Behrendt reportedly brings a wealth of experience and leadership to the company, reinforcing its commitment to being the partner of choice to governments globally.

He joins Serco having built a successful career in the Royal Australian Navy and executive leadership positions in organisations including Saab, BMT, and Dataminr Inc.

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At Serco, Behrendt will be responsible for leading the Defence business, focusing on enhancing service delivery, driving operational efficiencies, and expanding Serco’s portfolio of defence solutions.

Leveraging his military experience and successful leadership track record, Behrendt will help Serco shape innovative solutions that make positive impact and address some of the most urgent and complex challenges facing Defence in the region.

Serco Asia-Pacific CEO Andrew Head said Behrendt’s appointment comes at a crucial time as Serco seeks to strengthen its position in the defence sector and respond effectively to the growing demands for agile and innovative support services.

“Peter’s extensive experience and proven leadership in the defence sector make him the ideal candidate to lead our defence business,” Head said.

“His track record of delivering results and building strong relationships with clients aligns perfectly with Serco’s vision for the future. We are excited to welcome him to the team.

“I would like to acknowledge the incredible impact Clint Thomas, AM, CSC, has had on Serco throughout his tenure as managing director for defence. Clint’s vision and determination has fostered a culture of collaboration and innovation across our defence business.

“Under Clint’s leadership, we have achieved some remarkable milestones and strengthened our position as a trusted partner to Defence. He may be handing over the reins, but he is certainly leaving a lasting legacy. I am deeply grateful for his exceptional leadership and unwavering dedication to our mission.”

Behrendt, incoming managing director for defence, expressed his enthusiasm in joining Serco.

“I am thrilled to take on this new challenge and to work alongside such a talented group of professionals. Serco has a strong reputation for delivering quality services, and I look forward to helping solidify Serco’s position as the solutions partner of choice for Defence,” Behrendt said.

“It’s inspiring to see how Serco’s values reflect the fundamental goodness of its people, fostering a culture of collaboration, innovation and integrity. This commitment drives positive impact for Serco’s clients and the communities we operate in, showcasing the true essence of what makes the organisation thrive.”

Earlier this month, the company also announced it had been unsuccessful in rebidding the contract for the provision of onshore immigration detention facilities and detainee services under the Australian government’s Department of Home Affairs.

Serco had provided immigration services as a partner to the Australian government since October 2009.

“Our performance levels have been high on the current contract, and we submitted what we believed to be a compelling bid that would have delivered continued strong performance to the Australian government as well as meeting our framework for achieving margins appropriate for the services we deliver,” the company said.

“We will now work to ensure a smooth transition of these critical services to the new provider.

“The end date of our contract is 10 December 2024, after which there is a transition out period of up to 180 days.

“If the contract had been retained, we would have expected it to contribute around £165 million of revenue in 2025 and £18 million of underlying operating profit, which is approximately 6 per cent of analysts’ consensus*. We anticipate one-off end of contract cash costs of around £20 million, which have already been provided for, in accordance with our normal accounting policy.

“As part of general business, we planned for all scenarios related to this rebid. As a result of the outcome, we will now proceed with a change program during the transition period. The program will reduce the cost base, so it is appropriate for the remaining operations and ensure the business is well-positioned for opportunities in the coming years. Asia-Pacific remains an important market for Serco.”

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