Octagon Healthcare completes refinancing
12 December 2003 - 6:01PM
UK Regulatory
Octagon completes Norfolk and Norwich University Hospital refinancing
Octagon Healthcare Limited ("Octagon") has announced the successful completion
of the Norfolk and Norwich University Hospital refinancing which will release
significant resources for the NHS in central Norfolk.
The Norfolk and Norwich University Hospital at Colney in Norwich is the largest
single-build hospital in England completed to date under the Government's
Private Finance Initiative. The hospital was successfully handed to the Norfolk
and Norwich University NHS Trust 20 weeks early and ahead of budget in August
2001.
As a 5% shareholder in Octagon, Serco Group plc ("Serco") will receive a
capital distribution of �4.1 million arising from the refinancing. In
accordance with applicable United Kingdom accounting standards the capital
distribution will result in an exceptional and incremental profit before tax
and a cash inflow of �4.1 million in 2003.
The refinancing provides further evidence of Serco's active management of its
PFI portfolio to optimise returns to its shareholders.
Octagon Healthcare Limited has shared these refinancing gains with the Norfolk
and Norwich Hospital Trust in accordance with the Office of Government Commerce
guidelines.
Serco provides a range of support services to the hospital and will also
benefit from a five-year extension to the original contract, taking it to 35
years.
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For further information please contact Serco Group plc:
T +44 (0) 1256 745 900
Stephen Hill Corporate Finance Director
Kevin Johnson Head of Media & Public Relations
Notes to Editors:
Octagon Healthcare Limited is a special purpose vehicle whose principal purpose
is to provide certain services for, and maintain, the Norfolk and Norwich
University Hospital.
END