Babcock Shares Rally
Shares in troubled engineering support services group Babcock International have rallied following the announcement last week that Rolls Royce and ContourGlobal non-executive director Ruth Cairnie will replace retiring Chairman, Mike Turner.
Shares in the group - a key supplier of outsourcing and engineering services to public sector clients, including the UK Ministry of Defence (MoD), fell more than seven per cent in February on the back of lower-than expected projections and the announcement that it has set aside £10 million a year for the restructuring of its European aerial emergency services business in preparation for a no-deal Brexit.
Babcock recently announced 150 job losses, on top of 150 redundancies announced last year, and 250 in November 2017 at its shipyard in Rosyth, near Dunfermline, Scotland which is delivering the next generation of Queen Elizabeth Class (QEC) aircraft carriers for the British government.
The company is a member of the Aircraft Carrier Alliance consortium which includes prime defence contractors, BAE Systems and Thales.