12th Oct 2015 09:22
LONDON (Alliance News) - Babcock International Group PLC, an engineering support services company, on Monday said it has been awarded one new contract by the UK Ministry of Defence, plus an expansion of a second contract, together worth GBP100 million of revenue per year.
The company has been awarded a five-year contract for engineering services to the Royal Navy at air stations in the south west of England.
The aviation and engineering support and aircraft services contract includes the provision of forward maintenance and aircraft engineering for Merlin, Sea King, Lynx and Wildcat helicopters, general airfield engineering services and support to aircraft operations.
The contract is to provide full service delivery by January 1, 2016.
Babcock said it has seen further growth within its existing Defence Support Group contract to provide maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons for the MoD.
Additionally, Babcock said it will increase its responsibility for managing the procurement of equipment spares and repairables on behalf of the MoD, to include transacting with suppliers directly, which the company said was due to meeting an early milestone in the service provision and output based contract which began on April 1.
"We are delighted to continue to grow our partnership with the Ministry of Defence, both in the air and on the ground. Babcock is committed to delivering the improved performance levels, enhanced operational capability and increased cost effectiveness which are so critical for our customer," Chief Executive Peter Rogers said in a statement.
Shares in Babcock were up 0.6% at 988.50 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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