Military contracts arm support company Babcock for growth
BABCOCK shares rose 3.95 per cent yesterday after the engineering services firm said trading was good in the UK and overseas.
The firm said its order book now stands at £11.5bn, having won £700m-worth of work in the quarter including rail electrification contacts with Network Rail and services on Total’s oil platforms in the North Sea.
Babcock also confirmed that it is in the running for more work with the Ministry of Defence’s defence support group, which is responsible for the upkeep of military equipment.
Overall results are expected to be in line with forecasts, the firm added in its trading update yesterday.
Shore Capital analyst Robin Speakman said the order book was “slightly below expectations at this stage”, but added that the firm could make up lost ground through its £18.5bn bid pipeline.